Guarantee service exemption: government-issued loan guarantees to their undertakings or PSUs are not subject to GST. Services supplied by Central or State Governments to their undertakings or PSUs by way of guaranteeing loans from banking companies and financial institutions are exempt from GST under Entry No. 34A of Notification No. 12/2017-Central Tax (Rate); the CBIC circular reiterates this exemption and the Maharashtra tax administration has directed that the circular be applied mutatis mutandis under the Maharashtra GST Act, 2017, inviting reports of implementation difficulties.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Guarantee service exemption: government-issued loan guarantees to their undertakings or PSUs are not subject to GST.
Services supplied by Central or State Governments to their undertakings or PSUs by way of guaranteeing loans from banking companies and financial institutions are exempt from GST under Entry No. 34A of Notification No. 12/2017-Central Tax (Rate); the CBIC circular reiterates this exemption and the Maharashtra tax administration has directed that the circular be applied mutatis mutandis under the Maharashtra GST Act, 2017, inviting reports of implementation difficulties.
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