Finance Ministry notifies 18% GST on corporate guarantees in 52nd GST Council meeting
Committies and Meeting
The Central Board of Indirect Taxes and Customs (CBIC) has implemented an 18% Goods and Services Tax (GST) on corporate guarantees involving related entities, such as parent companies and subsidiaries, effective from Thursday, October 26th. The notification gives effect to the decision announced by the GST Council on October 8th. The CBIC order of the GST Rule is made prospectively such that the rule will have no impact on transactions executed prior to October 26th.The notification specifies that the 18% GST will apply to corporate guarantees between parent and subsidiaries and other related parties either on the
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