TaxTMI 
TaxTMI 
GST on Corporate Guarantee- Books Value or 1% ?
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....ST on Corporate Guarantee- Books Value or 1% ?<br> Query (Issue) Started By: - khushboo Doshi Dated:- 23-3-2026 Last Reply Date:- 1-4-2026 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>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....
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.... amount or on such higher percentage as per books of accounts? Please note no payment has been made for corporate guarantee fees. Reply By KASTURI SETHI: The Reply: See Circular No. 225/19/2024-GST [F. NO. CBIC-20001/4/2024 - GST] Reply By Anand Lobo: The Reply: Dear Sir, thank you for sharing the circular. While this circular clarifies several questions around corporate guarantee, I ....
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....am still unable to find any solution or answer to my specific query. Reply By KASTURI SETHI: The Reply: Serial No.6 of the circular is relevant for you. Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Dear Querist Kindly also refer to Circular 210 of 2024, more specifically para 3.7 specifically addresses your issue. I am reproducing the same for reference. In view of th....
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....e above, it is clarified that in cases where the foreign affiliate is providing certain services to the related domestic entity, and where full input tax credit is available to the said related domestic entity, the value of such supply of services declared in the invoice by the said related domestic entity may be deemed as open market value in terms of second proviso to rule 28(1) of CGST Rules. F....
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....urther, in cases where full input tax credit is available to the recipient, if the invoice is not issued by the related domestic entity with respect to any service provided by the foreign affiliate to it, the value of such services may be deemed to be declared as Nil, and may be deemed as open market value in terms of second proviso to rule 28(1) of CGST Rules. In your specific issue sinc....
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....e no corporate guarantee fees has been paid AND if the recipient is eligible for full ITC then nothing need be done. Reply By Shilpi Jain: The Reply: It will have to be paid at the higher % and not 1%. This is clear from the rules. Rule 28<br> Discussion Forum - Knowledge Sharing ....