Meenakshi, Executive Director of M/s CTC Private Limited provided the following services and supplies to the company during the financial year ending 31.03.2024: (iii) Consideration of ₹ 1,25,000 received against her per

Circular 204/16/2023-GST dated 27th October, 2023 "Clarification on issues pertaining to taxability of personal guarantee and corporate guarantee in GST" As per Explanation (a) to section 15 of CGST Act, the director and the company are to be treated as related persons. As per clause (c) of sub-section (1) of section 7 of the CGST Act, 2017, read with S. No. 2 of Schedule I of CGST Act, supply of goods or services or both between related persons, when made in the course or furtherance of business, shall be treated as supply even if made without consideration and thus would be covered in Schedule I and under section 7(1)(c) of the CGST Act. Accordingly, the amount received ₹ 1,25,000 for activity of providing personal guarantee by the Meenakshi to the banks/ financial institutions for securing credit facilities is taxable under Forward Charge.