GST applicability on Inter Corporate Guarantees

Last updated: 07 May 2021

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This document examines the applicability of Goods and Services Tax (GST) on inter-corporate guarantees, particularly those provided without consideration between related entities. It clarifies that such guarantees, often issued to support subsidiary companies, are considered a supply of service under GST law. The article highlights that even without explicit fees, these transactions can be taxable, especially under Schedule I of the CGST Act, which covers supplies between related persons. It's a crucial read for corporates with inter-company financial arrangements to ensure tax compliance.

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Submitted by CA Subba Reddy Bonam · Posted 07 May 2021 · Other files by CA Subba Reddy Bonam · Report

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