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Taxation Karnataka Ministry of Finance Karnataka Goods and Services Tax Act, 2017

Karnataka Goods and Services Tax (Fifth Amendment) Rules, 2023

05-Dec-2023 | (4-E/2023)/FD 02 CSL 2023

The government of Karnataka has issued Karnataka Goods and Services Tax (Fifth Amendment) Rules, 2023, effective from 26th October 2023. The key highlights of the amendment are: 1. Amendment of rule 28: the existing provision shall be re-numbered as sub-rule (1); and after sub-rule (1) as so renumbered, the following sub-rule shall be inserted, namely: - 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 a corporate guarantee to any banking company or financial institution on behalf of the said recipient, shall be deemed to be one percent of the amount of such guarantee offered, or the actual consideration, whichever is higher. 2. Amendment of rule 142: In rule 142 of the said rules, in sub-rule (3) for the words proper officer shall issue an order, the words proper officer shall issue an intimation shall be substituted. 3. Amendment of rule 159: In rule 159 of the said rules, in sub-rule (2), after the words Commissioner to that effect, the words and brackets or on expiry of a period of one year from the date of issue of order under sub-rule (1), whichever is earlier, shall be inserted.

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