GST council may impose 18% GST on personal guarantee loans: Report

It is reported that the GST Council may impose an 18% GST on loans secured by India Inc on bank guarantees.

"GST Council is likely to deliberate on the proposal to levy 18% GST on corporate guarantee extended by holding companies/subsidiaries," the sources said.

The report also said that the GST council is expected to deliberate on levying 18% GST on personal guarantee given by promoters/directors against loans given by banks

As per news source, this view has come up keeping in mind that the "council nominated law committee had come across such cases and the law committee is of a view that extending corporate/personal guarantee is a related party transaction and is considered as a supply. And supplies are treated at 18% GST".

On October 7, the 52nd meeting of the GST Council will be held in New Delhi. On August 2, the previous meeting of the council was held and it approved amendments to the Goods and Services Tax (GST) laws to provide clarity on the taxation of casinos, horse racing and online gaming. According to another news report, this year's meeting may also be looking at lowering the Goods and Services Tax (GST) rate from the current 28 percent on motor vehicles purchased by the visually impaired.