Corporate Guarantee, Goods and Services Tax - GST

[SATYANARAYAN MUDAKANNAVAR]

Dear Sir, How to over come the accounting part of GST on corporate guarantee and do avail ITC in subsidiary company as per the Circular No 225/19/2024-gst dated 11/07/2024. Is corporate guarantee covered RCM under GST and claim as ITC.

Please do the needful answer.

Satyanarayan H M

 

Posts / Replies

[RaamSrinivasan Kalpathi]

Your query is incomprehensible.  Kindly redraft.  Thanks

[Shilpi Jain]

If you are recipient of guarantee from an Indian entity then you are not liable to pay under RCM.

You can claim ITC subject to other conditions inthe law.

Account only the GST charged by the guarantor in your books and not the 1% amount mentioned in the invoice.