Author: Sundeep Gupta & Lakshay Chhabra,ASA
While GST was launched as a ship set to sail while being built, it is now nearly 7 years and the ship is sailing in the ocean. As any sailor would know, the calm of the ocean is only transient and there are interludes of thunder and storms making the ship wrestle the massive waves while trying to navigate and stay afloat. One such thunderstorm has arisen in the GST ocean in the form of taxation of Corporate Guarantees given by parent companies to its subsidiaries or group companies. To make the waves even higher and terrifying is the not-so-subtle provision in the GST law to even tax transactions where there is no consideration involved if related parties are involved.
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