Reverse charge GST on director services upheld for personal guarantee and security furnished for a company.

Services supplied by a director to a company are brought within reverse charge under Notification No. 13/2017-Central Tax (Rate), making the company liable to discharge GST on such services. On that basis, the claim that no GST was payable on the Managing Director's personal guarantee and security arrangement for the company was contrary to the notified tax treatment. The impugned orders rejecting exemption were therefore not found to be erroneous, arbitrary, or illegal, and no relief was granted.

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Issues: Whether GST was payable on the personal guarantee and security furnished by the Managing Director for the benefit of the company, and whether the impugned orders rejecting exemption were liable to be interfered with.

Analysis: Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017 specifically brings within the reverse charge mechanism services supplied by a director of a company or body corporate to the said company or body corporate. On that basis, the company becomes liable to discharge tax for such services. The notification was not under challenge, and the claim that no GST was payable on the personal guarantee/security arrangement was contrary to the notified tax treatment.

Conclusion: The challenge failed. The Court held that the impugned orders were not erroneous, arbitrary, or illegal, and the petitioner was not entitled to relief.

Final Conclusion: The writ petition was dismissed and the orders below were left undisturbed.

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