Notification No.: 52/2023 – Central Tax
Date of Notification: 26th October 2023
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 164 – Power of Government to make rules
- CGST Rules, 2017 (Amended):
- Rule 28(2) inserted – Valuation of corporate guarantees between related persons
- Rule 142(3) amended – “Order” replaced with “intimation” for demand adjustment
- Rule 159(2) amended – Provisional attachment ceases after 1 year unless extended
- Rule 12 & REG-01 amended – Recognition of One Person Company (OPC) for registration
- FORM GST REG-08 substituted – New format for cancellation of registration of TDS/TCS deductors/collectors
- FORM GSTR-8 amended – Interest/late fee reporting simplified
- FORM GST PCT-01 amended – Expanded eligibility criteria for GST practitioners (includes commerce, banking, business administration/management degrees, retired officials, ST practitioners, tax return preparers)
- FORM GST DRC-22 amended – Provisional attachment ceases automatically after 1 year or on issuance of DRC-23
Summary of Notification:
- Corporate Guarantee Valuation (Rule 28(2)): For services of corporate guarantee by related parties to banks/financial institutions, the value shall be 1% of guarantee amount or actual consideration, whichever is higher.
- Demand & Recovery Procedures:
- Rule 142(3) amended to issue intimation instead of “order” for certain demand adjustments.
- Rule 159(2) ensures automatic expiry of provisional attachment after 1 year unless extended by Commissioner.
- Registration Updates:
- One Person Companies (OPC) now explicitly included as eligible applicants in REG-01.
- New REG-08 format prescribed for cancellation of TDS/TCS deductor/collector registration.
- Return Filing & Practitioner Rules:
- GSTR-8 revised for simplified reporting of interest, late fees, and debit entries.
- PCT-01 amended to widen eligibility for GST practitioners – includes graduates/postgraduates in commerce, banking, business administration/management, foreign university degree holders, retired government officials, ST practitioners (5 years), tax return preparers (5 years).
- Provisional Attachment (DRC-22): Attachment ceases on issuance of DRC-23 or after 1 year, whichever is earlier, ensuring safeguards for taxpayers.