Bombay HC Quashes GST Demand on Corporate Guarantees for Absence of Consideration

D P Jain & Co. Infrastructure Private Limited Vs Union of India (Bombay High Court) The Bombay High Court partly allowed the writ petition filed by D.P. Jain & Co. Infrastructure Pvt. Ltd. challenging GST proceedings on corporate guarantees issued in favour of banks for loans granted to its subsidiary and related companies. The petitioner had executed three corporate guarantees between 2020 and 2022 for loans sanctioned by the State Bank of India and Bank of Maharashtra for highway and toll road projects. Each corporate guarantee deed specifically stated that the petitioner had neither...