Summary of CBIC notifications issued pursuant to 52nd GST Council meeting

Summary of CBIC notifications issued pursuant to 52nd GST Council meeting

Below is the quick summary of the notifications:



Deloitte comments

Notification 5/2023 IGST

In addition to the restrictions on refund, for the export of goods or services for specified goods, restriction is placed on refund of specified goods for SEZ as provided below:

“All suppliers to a Developer or a unit in Special Economic Zone undertaking authorised operations as the class of persons who may make supply of goods or services (except the goods specified in column (3) of the TABLE below) to such Developer or a unit in Special Economic Zone for authorised operations on payment of integrated tax and on which the said suppliers may claim the refund of tax so paid.”

Except for supply of goods like Tobacco, Pan Masala, Hookah, Cigarettes etc as specified in the notification 1/2023 IGST, suppliers will be entitled to refund of tax paid on supplies made to a Developer or a unit in SEZ undertaking authorised operations,  with effect from October 01, 2023.

This amendment resolves the issue that had arisen due to amendment of Section 16 whereby rebate method was not available wef 01 October 2023 for supplies made to SEZ recipients.

Notification 52/2023 CGST

New valuation rules is as inserted as provided below under Rule 28

(2) Notwithstanding anything contained in sub-rule (1), the value of supply of services by a supplier to a recipient who is a related person, by way of providing corporate guarantee to any banking company or financial institution on behalf of the said recipient, shall be deemed to be one per cent of the amount of such guarantee offered, or the actual consideration, whichever is higher.”

A new sub-rule has been inserted for the valuation of corporate guarantees between related parties, the valuation of corporate guarantees shall be higher of:

(a) 1% of the amount of guarantee offered or
(b) Actual consideration provided for such guarantee

In Rule 142(3) for the words “proper officer shall issue an order”, the words “proper officer shall issue an intimation” shall be substituted.

Proper officer can only issue an intimation and not further order in Form DRC – 05 concluding proceedings of the notice if any payment is made through FORM DRC – 03 within 30 days of issue of show cause notice

The following words are included in rule 159 (2) after the words Commissioner to that effect

On expiry of a period of one year from the date of issuance of order under sub-rule (1), whichever is earlier

With effect to this amendment action shall be taken by the revenue authorities on the movable or immovable property attached by the commissioner of GST through FORM GST DRC – 22 on the earlier of following:

(a) After written instruction are received from the commissioner to take such action or
(b) After expiry of one year from the date of issue of order in FORM GST DRC – 22

In Form GST REG – 01 in Part B “One person company” shall be included

A separate option is provided for registration of One Person Companies, before this amendment one person companies were registered under private limited companies

In addition, New Form GST REG-08 has been introduced in place of earlier one for Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source.

Also, changes have been made to GSTR-8 (Statement for tax collection at source) to provide for payment of late fee.

Notification 1Notification 2