There was some discussion on it, certain members did raise this issue, say revenue secretary Sanjay Malhotra.
"And it was informed to them that this is not retrospective in any way because this is how the law was earlier. The law has not been amended retrospectively. These liabilities were already existing", Malhotra said.
When a corporate guarantee given by a director to a company, the value of the service provided by way of guarantee will be treated to be zero or the consideration provided says Revenue Secretary Sanjay Malhotra.
Generally, there is no consideration provided because the director himself guarantee and there is no consideration, which is given to him for it.
So, it will not attract any GST because the value will be deemed to be NIL unless some consideration is paid, Malhotra added.
Similarly, when a corporate guarantee is given by a company to its subsidiary then it will be deemed that the value is 1% of the corporate guarantee. So it will attract GST at the rate of 18% on 1% of the total amount guarantee by the parent company, Malhotra said.
Union Finance Minister Smt. @nsitharaman will chair the 52nd GST Council meeting at Sushma Swaraj Bhawan, New Delhi, TODAY.
The meeting will be attended by Union Minister of State for Finance Shri @mppchaudhary, besides Finance Ministers of States and UTs (with Legislature) and… pic.twitter.com/9naECh2KGE
#WATCH | Delhi minister Atishi says "Today is the 52nd GST Council meeting. Despite the Delhi Govt's opposition, a 28% tax was imposed on the online gaming industry. Even before this tax was implemented, GST council sent tax evasion notices for the last six years worth Rs 1.5… pic.twitter.com/ih8NUmXN8P
Millet-based foods in powdered form are likely to get an exemption, according to the official.
Currently taxed at 18%, millets have been promoted under India's G20 presidency. The year 2023 was also declared the International Year of Millets by the United Nations General Assembly in 2021.
A series of demands over an alleged tax shortfall, extending from the gaming industry to the insurance and auto sectors, have been issued by GST authorities recently.
