https://www.taxtmi.com/caselaws?id=760172 The AAR Rajasthan ruled that GST under reverse charge mechanism on corporate guarantee is payable on one-time basis at the time of supply, not periodically. For guarantees executed after 26.10.2023, GST is payable on 1% of deemed total loan value as per Rule 28(2) of CGST Rules 2017 at contract execution time. The subsidiary receiving guarantee from foreign group companies without consideration must pay GST when the service is entered in books of account. The court clarified that guarantee value need not be divided equally among guarantee years for GST calculation purposes. en-us Fri, 28 Jun 2024 00:00:00 +0530 Tue, 13 May 2025 13:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760172 The AAR Rajasthan ruled that GST under reverse charge mechanism on corporate guarantee is payable on one-time basis at the time of supply, not periodically. For guarantees executed after 26.10.2023, GST is payable on 1% of deemed total loan value as per Rule 28(2) of CGST Rules 2017 at contract execution time. The subsidiary receiving guarantee from foreign group companies without consideration must pay GST when the service is entered in books of account. The court clarified that guarantee value need not be divided equally among guarantee years for GST calculation purposes. Case-Laws GST Fri, 28 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760172