The Government of Assam on July 18, 2024, issued Clarification on various issues pertaining to taxability and valuation of supply of services of providing corporate guarantee between related persons.
The following has been stated: -
• To ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, in the exercise of its powers conferred by section 168 of the Assam Goods and Services Tax Act, 2017 clarifications are issued.
•Some of the issues are as follows: -
Whether the valuation in terms of Rule 28(2) of GST Rules apply to the export of the service of providing corporate guarantee between related persons?
The clarification for it is that as per the amendment done in sub-rule (2) of rule 28 of GST Rules retrospectively w.e.f.October 26, 2023, vide notification No. 12/2024 -CT dated July 10, 2024, the provisions of the sub-rule will not apply in cases where the recipient of the services of providing corporate guarantee between related persons is located outside India. Accordingly, the provisions of the sub-rule shall not apply to the export of the services of providing corporate guarantees between related persons.
The detailed clarifications are given in the document below.
[Circular No. 169/2024-GST]
