Case Law Details
BST Steels Pvt. Ltd Vs Superintendent of Central Tax (Telangana High Court)
Telangana High Court upholds GST liability on director’s personal guarantee. Ruling supports Reverse Charge Mechanism (RCM) under GST. Read the full judgment.
Introduction: The Telangana High Court, in the case of BST Steels Pvt. Ltd vs. Superintendent of Central Tax, upheld the liability of a director’s personal guarantee to Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST). The petitioner contested the requirement to pay GST on the personal guarantee and security provided by the Managing Director to a bank.
Background: The petitioner challenged the order of the Superintendent of Central Tax, which rejected the contention that GST was not applicable to the personal guarantee and security provided by the Managing Director. The order was affirmed by the Additional Commissioner (Appeals-II).
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