The Government of Uttar Pradesh on July 16, 2024, issued Clarification on the issue pertaining to the taxability of personal guarantee and corporate guarantee in GST.
The following has been stated: -
•It is clarified that the sub-rule (2) of Rule 28 shall not apply in respect of the activity of providing personal guarantee by the Director to the banks/ financial institutions for securing credit facilities for their companies and the same shall be valued in the manner provided in S. No. (1) given in the document below.
The detailed circular is given in the document below.
[Circular No.2425023]
