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In this video tutorial, Girish Kulkarni explores the treatment of bank guarantees under GST law. He addresses the common practice of guarantees in borrowing processes by financial institutions, including banks. The discussion focuses on whether guarantees provided by a holding company for its subsidiary's borrowings, or by directors for a private limited company's loans, are considered taxable transactions under the GST regime. Kulkarni emphasizes that the classification of a transaction as a supply is crucial for determining its taxability, delving into the necessary parameters that define a taxable supply in the context of GST.
