Community Insights

Topic

Publish Date

Unveiling the Impact of GST on Corporate Guarantees

A Corporate Guarantee is a guarantee in which any corporation agrees to be responsible for the financial obligations of the principal debtor to the creditor. These transactions usually include inter-group Corporate guarantees, which are given to facilitate smoother financial functioning for the related persons. For example, A holding or parent company issues a corporate guarantee to Banks or Financial Institutions as collateral security ..... Read More

23.05.2024

CIRCULARS

Sr. No.

Circular No.

Subject

2.

Circular No. 225/19/2024-GST dt.11.07.2024 Clarification on various issues pertaining to taxability and valuation of supply of services of providing corporate guarantee between related persons.

1.

Circular No. 204/16/2023-GST dt. 27.10.2023 Clarification on issues pertaining to taxability of personal guarantee and corporate guarantee in GST

 

CASE LAW

Particulars Oneliner
2024(05)LCX0016

Punjab & Haryana High Court

Acme Cleantech Solutions Private Limited

Effect and operation of the Circular No. 204/16/2023-GST dated 27.10.2023 relating to taxability of  corporate guarantee by a person on behalf of another related person, or by the holding company for sanction of credit facilities to its subsidiary company, to the bank/ financial institutions even when made without any consideration, shall remain stayed