Setting the context
The Goods and Services Tax (GST) has been a revolutionary tax reform in India, simplifying the Indirect Tax structure and bringing about greater transparency. One area that has been a subject of much debate and interpretation is the GST implications on transactions between a director and the company. GST Council continuously strives to bring clarity relating to the tax impact on various transactions between Director and the Company. Recently, in the 52nd GST Council meeting, recommendations are also made for issuing Clarifications regarding taxability of personal guarantee offered by directors to the bank against the credit limits/loans being sanctioned to the company.
Source: taxguru.in
