GST on Personel Gurantee provided by Directors to company for taking Loans

[deepak gulati]

Dear Experts

What is your view on RCM payment on personnel guarantee provided by the Directors of the Company for taking Loan, I have seen Showcase on one whats app group on this service.

AI Summary

Debate on GST Applicability for Directors' Personal Guarantees Under Reverse Charge Mechanism as per Section 9(3) CGST Act. A discussion forum addressed the issue of Goods and Services Tax (GST) applicability on personal guarantees provided by company directors for loans. Participants debated whether such guarantees constitute a taxable supply under the reverse charge mechanism (RCM). The GST authorities argue that these guarantees are taxable transactions between related parties, even without consideration, as per Section 9(3) of the CGST Act, 2017. The debate centers on the interpretation of 'supply' and the tax liability under RCM, with references to specific sections and notifications of the CGST Act. Participants await further clarification from a proposed circular.