GST Demand Quashed for Ignoring Binding CBIC Circulars on Corporate Guarantee

Amman Try Trading Company Private Limited Vs State Tax Officer (Madras High Court) The case concerned the levy of GST on the provision of a corporate guarantee by a company to its related entity. The writ petitioner had furnished a corporate guarantee in favour of a related company but claimed that no consideration was received for this act. The assessing officer, however, concluded that such a guarantee constituted a supply of service under GST law and imposed tax at 1% of the guarantee amount. Aggrieved by this assessment, the petitioner challenged the order before the Madras High Court. The...