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Taxability Of Personal and Corporate Guarantee Under GST A corporate guarantee is a contract between a corporate entity or individual and a debtor. In this contract, the guarantor agrees to take responsibility for the debtor's obligations, such as repaying a debt. Recent clarification issued by Central Board of Indirect Tax & Customs (CBIC) with respect to taxability of personal and corporate guarantee provided to a Company under Goods and Services Tax (GST) law. In a recent circular, following clarifications have been provided: 204/16/2023-GST on 27th October, 2023. Taxability of personal guarantee by directors: Directors / promoters / employees and the Company are 'related persons' as per the explanation to Section 15 of the Central Goods and Services Tax Act, 2017 (CGST Act). The circular clarifies that personal guarantees offered by promoters, directors, managerial staff, etc. of borrowing company would be treated as taxable supplies, even if made without considerat...

TIME OF SUPPLY OF GOODS The time of supply for goods can be classified into three broad categories. o Time of Supply for Goods – Forward Charge o Time of Supply for Goods – Reverse Charge o Time of Supply for Goods – Miscellaneous Provisions (i) Default Rule: The time of supply of goods section 12 of the CGST act 2017, shall be the earlier of the following dates: (a) The date of issuing of invoice (or) the last day by which invoice should have been issued, OR (b) The date of receipt of payment. Note-1: The date of receipt of payment shall be earlier of- (a) The date on which payment is entered in the books of accounts; OR (b) The date on which the payment is credited to bank account. Note-2: Last date by which invoice should have been issued is the “date of removal of goods”. (ii) Time of supply of goods when the supplier is under composition scheme: • In such cases, time of supply of goods is the date of invoice. Time of supply of goods will be the same in case the turnover is up to...