GST implication on cross charge/mortgage provided for related party borrowing

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....ST implication on cross charge/mortgage provided for related party borrowing <br> Query (Issue) Started By: - Dipika Shetye Dated:- 30-8-2026 Goods and Services Tax - GST <br> Got 2 Replies <br> GST<b....

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....r> <br> The financial statements disclose that the company had provided a cross charge/security for borrowings availed by a related party, which continues to remain outstanding. The disclosure refers ....

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....only to a cross charge/security and does not specifically mention a corporate guarantee. Whether creation of such cross charge/mortgage in favour of the lender for securing a related party's loan can ....

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....be regarded as a corporate guarantee or taxable supply under GST. --Reply By: Sadanand Bulbule The Reply: Encumbering immovable property/securities is outside the domain of GST regime. So it does n....

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....ot attarct 1% tax. --Reply By: Sadanand Bulbule The Reply: Refer the following judgement on Corporate Guarantee: 2026 (8) TMI 990 - GUJARAT HIGH COURT Torrent Power Ltd Versus Union Of India & Ors.....

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