TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Circulars
of of All Circulars
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>GST Circular Clarifies Corporate Guarantee Valuation u/r 28(2); 1% Annual or Actual Consideration Applies.</h1> The circular addresses issues related to the taxability and valuation of corporate guarantees between related parties under GST. It clarifies that sub-rule (2) of Rule 28, amended retrospectively from October 26, 2023, determines the valuation of such guarantees, not their taxability. Guarantees issued before this date follow previous valuation rules, while those issued after adhere to the new rule. The valuation is based on 1% of the guaranteed amount annually or actual consideration, whichever is higher. The circular also explains GST applicability in cases of co-guarantors, loan takeovers, and intra-group guarantees, and specifies conditions for input tax credit eligibility.
TaxTMI 