CBIC Clarifies on Issues Pertaining to Taxability of Personal Guarantee and Corporate Guarantee in GST
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- By Chetan Kulasri
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- Last Updated on 30 October, 2023
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Circular No. 204/16/2023-GST dated October 27th, 2023
The CBIC has clarified that the activity of providing corporate guarantee or personal guarantee by the Director to the banks/financial institutions for securing credit facilities for their companies is to be treated as a supply of service, even when made without consideration. It is also provided that the taxable value of such supply of service shall be the open market value of such supply.
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