Corporate Guarantee to Subsidiary Under GST Lens: Bombay HC to Decide

Atlanta Infra Assets Limited Vs Union of India and Others (Bombay High Court) The Bombay High Court heard a writ petition raising a limited but significant issue under the Central Goods and Services Tax Act: whether corporate guarantees furnished by a parent company to secure borrowings of its subsidiaries constitute a “supply” liable to GST. The petitioner had provided corporate guarantees amounting to ₹700 crore for Mora Tollways Limited and ₹170 crore for Atlanta Ropar Tollways Pvt. Ltd., and the issue arose from an Order-in-Original passed by State GST authorities. At the hearing, ...