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In this video tutorial, Girish Kulkarni discusses the treatment of bank guarantees under GST law. He explains that guarantees are commonly required by financial institutions, such as banks and NBFCs, in the context of borrowings. The video explores whether guarantees provided by a holding company for a subsidiary’s borrowings or by directors for their private limited company’s borrowings are treated as taxable transactions under GST. The conversation focuses on the understanding of GST provisions, emphasizing that supply is the taxable event in GST and outlining the necessary parameters to qualify a transaction as a supply.
