It is re-iterated that guaranteeing of loans by Central or State Government for their undertaking or PSU is specifically exempt under said entry No. 34A.
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All)
Certain representations have been received requesting for clarification regarding applicability of GST on supply of service by State Govt. to their undertakings or PSUs by way of guaranteeing loans. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021.
2. Entry No. 34A of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 exempts “Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the banking companies and financial institutions.”
3. Accordingly, as recommended by the Council, it is re-iterated that guaranteeing of loans by Central or State Government for their undertaking or PSU is specifically exempt under said entry No. 34A.
4. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board.
Technical Officer (TRU)
Email: [email protected]
7 GST Circulars issued by CBIC on 17th June 2021 as per decisions of 43rd meeting of GST Council held on the 28th May, 2021
|GST rate on laterals/parts of Sprinklers or Drip Irrigation System||Circular No. 155/11/2021-GST||17/06/2021|
|No GST on guaranteeing of loans by Govt for their undertaking or PSU||Circular No. 154/10/2021-GST||17/06/2021|
|GST on milling of wheat into flour or paddy into rice for distribution by Govt||Circular No. 153/09/2021-GST||17/06/2021|
|GST on works contract service by way of construction of rope way||Circular No. 152/08/2021-GST||17/06/2021|
|GST on services provided by Central or State Boards||Circular No. 151/07/2021-GST||17/06/2021|
|GST on annuities paid for construction of road||Circular No.150/06/2021-GST||17/06/2021|
|No GST on supply of food in Anganwadis and Schools||Circular No. 149/1/2021-GST||17/06/2021|