No GST on Corporate Guarantee Without Consideration: Bombay HC

Advertisement In case of corporate guarantee, “No consideration- no tax liability under GST” Bombay High court. In the recent case of M/s. D P Jain & Co. Infrastructure Private Limited vs Union of India and others Bombay High Courtheld that, In case of corporate guarantee, There was no flow of consideration for the rendering of services, so taxability does not arise. However amendment to the Valuation rule of taxation of corporate guarantee are constitutionally valid. Facts of the case The Petitioner Company M/s D.P. Jain & Co. infrastructure Pvt. Ltd. is engaged in the business...