GST Council Meet: Tax Levied On Pre-Packed Millets, Centre Cedes Power Of GST On ENA And More

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.

Pre-deposits for appeals during the extended time to be 2.5% of the amount in dispute.

The step has been taken to promote tourism, says FM Sitharaman.