GST on Corporate Guarantee- Books Value or 1% ?

[khushboo Doshi]

What would be the valuation adopted for Corporate Guarantee purposes, if the accounting is done at a rate higher than specified under GST (i.e. more than 1%). Would GST still be payable at 1% of sanctioned amount or on such higher percentage as per books of accounts?

Please note no payment has been made for corporate guarantee fees.

AI Summary

Corporate guarantee valuation under GST follows the higher declared percentage where books of account exceed the prescribed rate.
Valuation of corporate guarantee under GST is discussed with reference to the rule governing related-party supplies and the treatment of declared invoice value, book value, and prescribed percentage valuation. The discussion indicates that where the corporate guarantee is accounted for at a rate higher than the prescribed percentage, GST valuation is to follow the higher declared percentage rather than a lower notional rate, as the valuation rule and related circular guidance are treated as controlling the measure of supply.