prpri No GST on guaranteeing of loans by Govt for their undertaking or PSU  No GST on guaranteeing of loans by Govt for their undertaking or PSU 

 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.

CBIC-190354/36/2021-TRU Section-CBEC
Government of India
Ministry of Finance

Department of Revenue
North Block, New Delhi,

Circular No. 154/10/2021-GST | Dated the 17th June, 2021

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Sub: GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them –reg.

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.”

GST on service supplied by Central State Government to their undertakings or PSUs by way of guaranteeing loans taken by them

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.

Yours faithfully,

Shashikant Mehta
Technical Officer (TRU)
Email: shashikant.mehta@gov.in

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

Title Notification No. Date
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

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