Corporate Guarantee Without Consideration Not Taxable Under GST - A2Z Taxcorp LLP

The Hon’ble Bombay High Court in the case of D P Jain & Co. Infrastructure Private Limited vs Union of India & Ors. [Writ Petition No.  2087 Of 2025, order dated May 06, 2026] held that executing a corporate guarantee by a holding company in favour of its subsidiary, without any consideration, is not a “supply” or “supply of service” taxable under Section 9 of the CGST Act, 2017. The…