Sub-rule (2) of Rule 28 of CGST Rules provides for valuation of ...

Corporate guarantee between related parties: 1% p.a. of guaranteed amount or actual fee, whichever higher. ITC available. No GST on existing loans unless fresh guarantee.

Circulars GST

July 12, 2024

Sub-rule (2) of Rule 28 of CGST Rules provides for valuation of supply of services of providing corporate guarantee between related persons. It applies to guarantees issued/renewed on or after 26.10.2023. Value is 1% of guaranteed amount per annum or actual consideration, whichever is higher. ITC is available irrespective of loan disbursal. No GST on takeover of existing loans unless fresh guarantee. For co-guarantors, value is sum of consideration or proportionate 1% of respective guaranteed amounts. Domestic guarantees under forward charge, overseas under reverse charge. Second proviso of sub-rule (1) applies. Export of such services excluded.

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Sub-rule (2) of Rule 28 of CGST Rules provides for valuation of ...

Corporate guarantee between related parties: 1% p.a. of guaranteed amount or actual fee, whichever higher. ITC available. No GST on existing loans unless fresh guarantee.

Circulars GST

July 12, 2024

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