https://www.taxtmi.com/forum/issue?id=117689 GST on corporate guarantees depends on recorded consideration: if no consideration is reflected in books the transaction is not a supply under Section 7(1)(a) and no GST arises; if consideration exists the guarantor may be liable and one may alternatively treat the obligation under the reverse charge mechanism with the company discharging tax and availing input tax credit. Characterisation of a director's guarantee turns on whether an employer employee relationship exists; valuation and 'out of books' consideration are enforcement concerns. en-us Fri, 10 Dec 2021 17:00:29 +0530 Thu, 23 Jan 2025 15:54:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117689 GST on corporate guarantees depends on recorded consideration: if no consideration is reflected in books the transaction is not a supply under Section 7(1)(a) and no GST arises; if consideration exists the guarantor may be liable and one may alternatively treat the obligation under the reverse charge mechanism with the company discharging tax and availing input tax credit. Characterisation of a director's guarantee turns on whether an employer employee relationship exists; valuation and 'out of books' consideration are enforcement concerns. Discussion-Forum GST Fri, 10 Dec 2021 17:00:29 +0530 https://www.taxtmi.com/forum/issue?id=117689