https://www.taxtmi.com/forum/issue?id=121094 GST treatment of a cross charge or mortgage securing a related party's borrowing depends on whether the company has independently undertaken to repay the debt on default. Where executed facility, security and guarantee documents show only collateral security and no payment obligation, the arrangement may be provision of security rather than a corporate guarantee. In that event, Rule 28(2) applicable to corporate guarantees would not apply merely because the company's assets are encumbered. The contractual documentation is determinative. en-us Sun, 30 Aug 2026 11:25:30 +0530 Sun, 06 Sep 2026 16:32:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=121094 GST treatment of a cross charge or mortgage securing a related party's borrowing depends on whether the company has independently undertaken to repay the debt on default. Where executed facility, security and guarantee documents show only collateral security and no payment obligation, the arrangement may be provision of security rather than a corporate guarantee. In that event, Rule 28(2) applicable to corporate guarantees would not apply merely because the company's assets are encumbered. The contractual documentation is determinative. Discussion-Forum GST Sun, 30 Aug 2026 11:25:30 +0530 https://www.taxtmi.com/forum/issue?id=121094