Torrent Power Ltd Vs Union of India & Ors
- Court:
- High Court
- Bench:
- Gujarat
- Date:
- August 13, 2026
- Type:
- Special Civil Application
- Members:
- A.S. SUPEHIA, VAIBHAVI D. NANAVATI
Subject
Corporate Guarantees Taxable Under GST; 1% Deemed Valuation Upheld but 'Whichever is Higher' Read Down
Summary
The High Court upheld the constitutional validity of Rule 28(2) of the CGST Rules, 2017, and Section 15(4) of the CGST Act, 2017, which deems corporate guarantees as a taxable supply of services. However, the phrase "whichever is higher" in the 1% de…
Judgement
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT 1. In the present group of writ petitions, the petitioners, who have furnished corporate guarantees have challenged the vires of Rule 28(2) of Central Goods and Service Tax Rules, 2017 (for short, “CGST Rules”) and Central Goods and Service Tax Act, 2017 (for short, “the CGST Act”). A declaration is sought from this Court to declare the provisi…