GST Filling GST apply to corporate guarantees between Subsidiaries, Parent & parties

GST apply to corporate guarantees between Subsidiaries, Parent & parties

GST apply to corporate guarantees between Subsidiaries, Parent & parties

18% GST apply to corporate guarantees between Subsidiaries, Parent & Related parties

GST on service supplied by State or Central Govt. to their undertakings or Public sector undertaking’s by way of guaranteeing loans taken by them -The Central Board of Indirect Taxes and Customs issue explanation that guaranteeing of loans by State & Central Govt for their undertaking or Public sector undertaking is specifically exempt via GSTN issue Entry No. 34A of Notification no. 12/2017- Dated 28.06.

According to The Central Board of Indirect Taxes and Customs order, 18 percentage of Goods and Services Tax will apply to corporate guarantees between subsidiaries & parent and other related parties either on the financial consideration amendment by guarantor for that service, or 1 percentage of value of the guarantee, whichever is higher.

Rajput Jain and associates professional experts explain change in GST rule will have no impact on transactions executed before 26 Oct 2023. The Central Board of Indirect Taxes and Customs had said that in the case of corporate guarantees issued to a bank by a director against loans issue to a company, & where no fee is paid to director for that service, No Goods and Services Tax would applicable. Rajput Jain & Associates experts said there is no clarity on the due timeline of GST payments on corporate guarantees –one-time, monthly or annually.

Disclaimer: The content of this post isn't considered to be professional or legal advice, We aren't responsible for any damages arising from your access to the location content & must not be relied on or used as a substitute for legal advice from a lawyer professional in your jurisdiction. CARajput is among India's big digital compliance services platform which committed to helping people have started & developed their businesses. We had started with the goal of creating it easier for start-ups to start out their business. Our main aim is to assist the businessman with applicable laws & regulations compliance and providing support at each & every level to make sure the business stays compliant and growing continuously. For any query, help or feedback you may in touch on singh@carajput.com or Call or what’s-up on 9-555-555-480

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