No GST on Director’s Personal Guarantee, Loan Extensions: Kerala HC

Manappuram Finance Ltd. Vs Union of India (Kerala High Court) Summary: In the case of Manappuram Finance Ltd. v. Union of India, the Kerala High Court addressed whether GST applies to services provided by a company’s director in the form of a personal guarantee for loans or to intercompany loans extended by the company. Manappuram Finance received a show-cause notice demanding GST under the Reverse Charge Mechanism (RCM) for these transactions. The company argued that CBIC circulars, issued in October 2023 and June 2024, exempt these services from GST. The October circular states that no...