Vedanta Challenges GST on Corporate Guarantees: HC stays GST circular

Vedanta Limited Vs Union of India & Ors. (Bombay High Court) Vedanta Limited filed a writ petition challenging the imposition of Goods and Services Tax (GST) on the activity of providing corporate guarantees to its subsidiary under Section 9 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioners sought a declaration that such activities should not be considered as “supply” or “supply of service” subject to taxation. They also contested the constitutional validity of a circular issued on 27th October 2023 that called for the tax to be levied, claiming it violate...