LatestGoods & Service Tax (GST) 5 July 2026
GST on Corporate Guarantees Challenged
Gujarat High Court is hearing challenges to GST on corporate guarantees issued without consideration, with the tax department deeming these a taxable supply, companies are arguing that such guarantees are not a taxable supply as no consideration is received in return, the court's decision is expected to have significant implications for businesses in the state
The Gujarat High Court is currently hearing challenges to the Goods and Service Tax (GST) imposed on corporate guarantees issued without consideration. *Key points of the case include*:
- The tax department considers these guarantees a taxable supply
- Companies argue that such guarantees are not a taxable supply as no consideration is received in return
The court's decision is expected to have significant implications for businesses in the state, particularly those that frequently issue corporate guarantees without charging a fee.
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