GAIL India Slapped with 143 Cr Penalty for Non-Payment of GST on Corporate Guarantee:

GAIL India Slapped with 143 Cr Penalty for Non-Payment of GST on Corporate Guarantee The GAIL (India) Limited, one of the leading companies in retailing, distribution, and marketing of Natural Gas, is facing a heavy GST penalty of Rs 143.08 Crore levied by the GST department.

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The company, on December 11, 2025, informed the stock exchanges under the mandatory disclosure under Regulation 30 of SEBI LODR Regulations, 2015, that it has received an Order-in-Original from the Additional Commissioner, CGST, Delhi South Commissionerate demanding GST on Corporate Guarantee. As per this order, received on December 10, 2025, at 5:00 PM, the company has failed to pay the GST on the Corporate Guarantee issued to the bank on behalf of subsidiaries and Joint Ventures without consideration.

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Corporate Guarantee is a formal agreement where one company agrees to be responsible for another company's debt or loan if the primary borrower defaults. It is treated as a supply of services, attracting GST. Since the company allegedly failed to pay such GST, the tax department has levied a penalty of Rs 143,08,40,592 on the company.