GST exemption for government guarantees preserves non-taxability of guarantee services to undertakings and PSUs from banks and financial institutions. Services by Central, State or Union territory governments consisting of guaranteeing loans taken by their undertakings or Public Sector Undertakings are exempt from GST when such loans are from banking companies and entities meeting the statutory definition of financial institution as set out in clause (c) of section 45 I of the Reserve Bank of India Act, 1934; the exemption applies specifically to guarantees furnished by the government to its own undertakings or PSUs.
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.
GST exemption for government guarantees preserves non-taxability of guarantee services to undertakings and PSUs from banks and financial institutions.
Services by Central, State or Union territory governments consisting of guaranteeing loans taken by their undertakings or Public Sector Undertakings are exempt from GST when such loans are from banking companies and entities meeting the statutory definition of financial institution as set out in clause (c) of section 45 I of the Reserve Bank of India Act, 1934; the exemption applies specifically to guarantees furnished by the government to its own undertakings or PSUs.
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