GST implications on Corporate/Personal Guarantee

Submitted by prasanna.b@tax… on Tue, 05/10/2021
GST is being demanded during audit by the officers on the corporate guarantees provided by related parties including Directors/ promoters of the companies. There is ambiguity on the nature of the guarantee, on whether it is a supply under GST, quantification of consideration, if it is treated as a supply, etc., An analysis is made below for your reference:

DELIVERING QUALITY SERVICES WITH UTMOST DILIGENCE

YSR & Associates, is a partnership firm offering comprehensive qualitative services to various institutions, business organizations of various industries and individuals, across the entire spectrum of advisory, consultation and litigation, specializing in the areas of Customs, GST, FEMA, and PMLA.  Our qualified and experienced team focus on fighting for your rights.  Every case is handled by a dedicated team of domain experts.  As a value based firm, it is driven by passion for delivering quality solutions, client satisfaction and high standards of professional ethics.  We at YSR &

Place of supply of services

Submitted by admin on Tue, 12/12/2017

A.Where location of supplier and recipient is in India: (Section 12)

Inter-state supply: (Section 7 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of services are in the different states, it shall be treated as inter-state supply as per Section 7 of IGST Act, 2017. Supply of services to or by a SEZ will be treated as an inter-state supply.

Intra-state supply: (Section 8 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of services are in the same state, it shall be treated as intra-state supply as per Section 8 of IGST Act, 2017. Subject to provisions of section 12, intra-state supply of services shall not include supply of services to or by a SEZ.

B.Where location of supplier or recipient is outside India (Sec. 13)

Job work Procedure

Submitted by admin on Mon, 11/12/2017

As per Earlier Laws:

  • When the goods are manufactured in job worker premises, the manufacturer has to give a declaration under notification no. 214/86 dated 25.03.1986 to claim exemption from payment of excise duty.
  • The declaration has to be given to the AC/DC of central excise having jurisdiction over the factory of the job worker.
  • Manufacturer has to send the goods through challan under Rule 4(5)(a) of Cenvat credit rules, 2002 by filling part-1.
  • The job worker has to fill the part-2 while sending the goods back to the manufacturer.

Place of supply of services

Submitted by admin on Mon, 11/12/2017
Inter-state supply: (Section 7 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of goods are in the different states, it shall be treated as inter-state supply as per Section 7 of IGST Act, 2017.

Intra-state supply: (Section 8 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of goods are in the same state, it shall be treated as intra-state supply as per Section 8 of IGST Act, 2017.

Our Firm

YSR & Associates, is a partnership firm offering comprehensive qualitative services to various institutions, business organizations of various industries and individuals, across the entire spectrum of advisory, consultation and litigation, specializing in the areas of Customs, GST, FEMA, and PMLA.  Our qualified and experienced team focus on lighting for your rights.  Every case is handled b y a dedicated team of domain experts.  As a value based firm, it is driven by passion for delivering quality solutions, client, satisfaction and high standards of professional ethics.  We at YSR &am