Government loan guarantee exemption confirmed: guarantees to state undertakings and PSUs are GST exempt as clarified. Services supplied by the Central, State or Union Territory governments to their undertakings or Public Sector Undertakings by way of guaranteeing loans taken from banking companies and financial institutions are exempt under Entry No. 34A of Notification No. 12/2017-(Rate). The Circular reiterates the GST Council's recommendation confirming this exemption, states it is clarificatory and not an interpretation of the Act or rules, and notes a deemed effective date with invitation to report implementation difficulties.
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Provisions expressly mentioned in the judgment/order text.
Government loan guarantee exemption confirmed: guarantees to state undertakings and PSUs are GST exempt as clarified.
Services supplied by the Central, State or Union Territory governments to their undertakings or Public Sector Undertakings by way of guaranteeing loans taken from banking companies and financial institutions are exempt under Entry No. 34A of Notification No. 12/2017-(Rate). The Circular reiterates the GST Council's recommendation confirming this exemption, states it is clarificatory and not an interpretation of the Act or rules, and notes a deemed effective date with invitation to report implementation difficulties.
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