GST on Corporate-Guarantee from overseas group entity payable only one-time, not periodically: Rajasthan’s AAR

Goods & Services Tax (GST) on corporate-guarantee from overseas group entity payable only one-time, not periodically, Rajasthan’s Authority for Advance Ruling (RAAR) has held. Experts say though the ruling is in line with the Circular, it poses the challenge of paying the full tax upfront for the entire duration of the guarantee. “GST under reverse charge mechanism (RCM) is require…