GST Exemption on Loan Guarantees by Government to PSUs Under Notification No. 29/2018, Effective January 2019.

Services provided by the Central Government, State Government, or Union territory to their undertakings or Public Sector Undertakings (PSUs) are exempt from GST. This exemption applies when these entities guarantee loans taken from banking companies and financial institutions. The term "financial institution" is defined as per the Reserve Bank of India Act, 1934. The exemption was amended by Notification No. 29/2018, effective from January 1, 2019, and initially introduced by Notification No. 15/2018, effective from July 27, 2018.