Personal Guarantee and Corporate Guarantee

Notification

Taxability of Personal Guarantee and Corporate Guarantee under GST| Clarified by CBIC

Providing guarantee is a very common part of business finance wherein one person provides guarantee to the bank or financier on behalf of the other person for securing loan or credit facility. In some cases, commission is paid as a consideration for providing guarantee. CBIC has received various representations with respect to applicability of GST on personal guarantee provided by Director to the bank for granting credit facility to the company or corporate guarantee provided by the company on behalf of its sister concern or subsidiary company.

28/11/2023

Goods and Service Tax

CBIC Notifies Amnesty Scheme for filing of Appeal under GST till 31.01.2024

Amnesty Scheme is a one time window that the government opens to complete compliance of earlier periods. Government keeps on announcing Amnesty scheme for various compliances so that those who have failed to carry such compliance by the specified due date may complete the same within new notified dates with less or no penalties.

21/11/2023

News and Announcements

Standard Operating Procedure (SOP) for processing of GST Registration application at Seva Kendra

CBIC has established a centralized GST registration cell (“Seva Kendra”) to receive and process the request of new GST registration. In line with same, CBIC has issued Standard Operating Procedures for processing of GST registration application by Seva Kendra vide F.3(486) GST/Policy/ 2023/ T22) dated 23rd June, 2026

07/11/2023

Information

Procurement from Chinese Companies through GeM Portal in India

GeM (Government e-Marketplace) is a national public procurement platform. This is an online platform designed specifically for the government departments and government companies for any kind of procurement. Government bodies, i.e., Central Government, State Government, Public Sector Undertakings (PSUs) and municipal bodies, are required to place through tender on GeM and all eligible suppliers are free to submit quotations for such tender.

24/10/2023

Council Meetings

Detailed analysis of 52nd GST Council Meeting

GST Council met for 52nd time on 7th October, 2023 under the chairmanship of Hon’ble Finance and Corporate affair minister. GST Council discussed various aspects such as Amnesty Scheme for filing of GST Appeal, Clarification on applicability of GST on Guarantee services provided by director and company, changes in GST rates etc.

17/10/2023

Amendment under IGST Act effective from 01.10.2023| GST exempted on ocean freight on Import of Goods and others

Circulars

Amendment under IGST Act effective from 01.10.2023| GST exempted on ocean freight on Import of Goods and others

CBIC, has made major amendments under IGST Act which will be having impact on both, businessmen and end users. Some services tend to get costlier for end users and importers are getting major relief from payment of tax on some services.

10/10/2023

Constitutional Validity of Section 16(4) of CGST Act, 2017 is upheld

Judgements

Constitutional Validity of Section 16(4) of CGST Act, 2017 is upheld

Section 16(4) prescribes one of the conditions to make a registered person entitled to take ITC. Therefore, right of a registered person to take ITC under Section 16(1) becomes a vested right only if such condition is fulfilled.

26/09/2023

GST is payable on sub-licensing of the software by the Indian Subsidiary to the end-user

Judgements

GST is payable on sub-licensing of the software by the Indian Subsidiary to the end-user

M/s AVEVA Software Private LImited (“The Applicant”) is a subsidiary of AVEVA Plc. AVEVA Group has a Central Hub, located outside India, which is an IP Owner and manages and grants the license of the AVEVA software products to the group entities. Such entities further sub-licence the same software to the end user on his own account (i.e., in his own capacity without acting as a agent). The Applicant receives the sub-licensing fees from the end user. In turn, the applicant pays operating fees to the Central Hub on quarterly basis after retaining the he cost and guaranteed margin from the value of sales. In case, the Applicant is unable to retain the agreed cost and guaranteed margin, the Central Hub makes a payment to ensure that the Applicant retains the guaranteed margin.

19/09/2023

Clarification on Difference in ITC availed in GSTR-3B and GSTR-2A, TCS in case of multiple e-commerce operators and ITC reversal on warranty replacements

Circulars

Clarification on Difference in ITC availed in GSTR-3B and GSTR-2A, TCS in case of multiple e-commerce operators and ITC reversal on warranty replacements

CBIC has clarified the manner of dealing with differences in ITC available in GSTR-3B and ITC available as per GSTR-2A vide Circular No. 183/15/2022-GST dated 27th December, 2022 for FY 2017-18 and 2018-19 in various situations.

12/09/2023

GST Implication on Employee Stock Option Plans (ESOPs)

News and Announcements

GST Implication on Employee Stock Option Plans (ESOPs)

Employee Stock Option Plans (ESOPs) is also one of the most common methods of payment of employment considerations under which a company issues its shares to the employees at a discounted rate.

04/09/2023

Archives

Taxability of Personal Guarantee and Corporate Guarantee under GST| Clarified by CBIC

CBIC Notifies Amnesty Scheme for filing of Appeal under GST till 31.01.2024

Standard Operating Procedure (SOP) for processing of GST Registration application at Seva Kendra

Procurement from Chinese Companies through GeM Portal in India

Detailed analysis of 52nd GST Council Meeting

Amendment under IGST Act effective from 01.10.2023| GST exempted on ocean freight on Import of Goods and others

Constitutional Validity of Section 16(4) of CGST Act, 2017 is upheld

GST is payable on sub-licensing of the software by the Indian Subsidiary to the end-user

Clarification on Difference in ITC availed in GSTR-3B and GSTR-2A, TCS in case of multiple e-commerce operators and ITC reversal on warranty replacements

GST Implication on Employee Stock Option Plans (ESOPs)

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