CBIC issues Clarification on GST Liability and Valuation of Corporate Guarantee between related Persons

The article from Taxscan discusses a clarification by the CBIC on GST liability and valuation of corporate guarantees between related parties. According to the clarification, such guarantees are treated as a taxable supply under GST if the guarantor charges a fee. Valuation should be based on the open market value of similar guarantees. This guideline aims to ensure consistent treatment and valuation methods across related-party transactions under GST.