Stay updated
The Hon’ble Bombay High Court in the case of D P Jain & Co. Infrastructure Private Limited held that executing a corporate guarantee by a holding company in favour of its subsidiary, without any consideration, is not a “supply” or “supply of service” taxable under Section 9 of the CGST Act, 2017.
CBIC issued Circular No. 225/19/2024-GST on 11.07.2024 providing clarification on various issues pertaining to taxability and valuation of supply of services of providing corporate guarantee between related persons.
As the GST Council gears up for its meeting on June 22, several major issues are on the agenda that could significantly impact the regulatory landscape for businesses and taxpayers alike.
In a substantial relief for many of the holding companies in India, the Punjab & Haryana High Court has stayed a circular that brought corporate guarantees under the ambit of GST, TOI reported on May 7.
Punjab and Haryana High Court stays CBIC Circular dated 27.10.2023, to the extent it clarifies that corporate guarantee (CG) provided by a company to a bank/ financial institutions providing credit facilities to the other company, where both companies are related, even when made without any consideration, is to be treated as a supply of service between related parties as per provisions of Schedule I of CGST Act, 2017.
Real estate developers have made representation before Finance Minister Nirmala Sitharaman to make amendments in the recent circular of imposing 18% GST on corporate guarantees given by related parties, as per government sources. “As per developers, 18% GST should be…
In a recent circular, Circular No. 204/16/2023-GST, dated 27-10-2023 following clarifications have been provided in respect of GST on Corporate Guarantee. A. Taxability of personal guarantee by directors: Directors / promoters / employees and the Company are ‘related persons’ as per the…
Introduction The 52nd GST council has recommended clarity w.r.t personal guarantee given by a director and Corporate Guarantee including GST taxability on the same. This has been a long pending issue. It is relevant to note the very recent hon’ble…
Several large corporate houses are planning to file writ petitions before high courts challenging the GST Council’s recent decision to charge 18% GST on corporate guarantees given by the holding companies to their subsidiary companies, according to people in the…
M/s. Infrastructure Leasing and Financial Services Limited (“the Respondent”) is engaged in the business of providing ‘financial services’. The Respondent was issued Show Cause Notice dated July 23, 2009, and September 29, 2010 (“the SCN”) by the Revenue Department (“the…