GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them

Last updated: 16 July 2021

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This notification clarifies the Goods and Services Tax (GST) applicable to services provided by State Governments to their own undertakings or Public Sector Undertakings (PSUs). Specifically, it addresses the tax treatment when these services involve guaranteeing loans taken by the undertakings or PSUs. The aim is to provide clarity on the tax obligations in such financial arrangements.

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FAQ :

The notification concerns the Goods and Services Tax (GST) applicable to services provided by State Governments to their undertakings or PSUs, especially when guaranteeing loans.

This notification affects State Governments, their undertakings, and Public Sector Undertakings (PSUs) that receive services from the State Government, particularly loan guarantees.

The notification focuses on the service of guaranteeing loans taken by undertakings or PSUs, provided by the State Government.

You can download the official notification from the provided link within the article.

Circular No : 154/05/2021-GST
Source : http://www.cbic.gov.in/htdocs-cbec/gst/Circular_Refund_154.pdf

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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