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of <h1>Andhra Pradesh Circular No. 09/2021: GST Exemption on State Loan Guarantee Services to PSUs Confirmed by GST Council.</h1> The Government of Andhra Pradesh issued Circular No. 09/2021 clarifying the applicability of GST on services provided by the State Government to its undertakings or Public Sector Undertakings (PSUs) by guaranteeing loans. The GST Council, in its 43rd meeting, confirmed that such services are exempt from GST under Entry No. 34A of the notification issued on 12-12-2017. This exemption applies to services supplied by the Central or State Government to their undertakings or PSUs for loan guarantees from banks and financial institutions. Any difficulties in implementing this circular should be reported to the Chief Commissioner.
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