Clarification on issue pertaining to taxability of personal guarantee and corporate guarantee in GST

GST applicability clarified: treatment of vehicle leasing, electricity reimbursements, job work for malt, DMFT exemptions and horticulture supplies.

The CBIC circular is applied mutatis mutandis under the DGST Act, 2017 to clarify GST treatment: leasing of motor vehicles without operator is excluded from 'same line of business' and treated like sale of motor vehicles; electricity bundled with renting/maintenance is a composite supply taxed at the principal supply rate, while pure agent or actual reimbursement is excluded from value; job work converting barley to malt is job work in relation to food products and attracts the lower job work rate; DMFTs set up by States are Governmental Authorities eligible for exemptions; and horticulture services to CPWD with goods value not exceeding 25% are exempt under the notification.