Question
Consider the following statements regarding the GST to
be levied on corporate guarantee for subsidiaries and molasses- I.The GST Council has notified that guarantees provided by corporates to their subsidiaries will attract a 14 per cent GST. II.No tax will be levied if a personal guarantee is given by a director to the company. III. The council has also cut the GST rate on molasses to 9 percent from 28 percent. Which of the following statements is/are correct?Solution
The GST Council has notified that guarantees provided by corporates to their subsidiaries will attract an 18 per cent GST, while no tax will be levied if a personal guarantee is given by a director to the company.The council has also cut the GST rate on molasses to 5 per cent from 28 per cent. The reduction in GST on molasses will benefit sugarcane farmers and enable their dues to be cleared faster because more money will be left in the hands of the mills.
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