GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them - GST - States - 10/2021 - GST (State)

No. F.1-11(8)-TAX/GST/2021/20572-671 GOVERNMENT OF TRIPURA OFFICE OF THE CHIEF COMMISSIONER OF STATE TAX PANDIT NEHRU COMPLEX, GURKHABASTI AGARTALA, TRIPURA WEST, PIN-799006. Dated, Agartala, the 28 th June, 2021. Circular No. 10/2021 - GST (State) To The Additional Commissioner of State Tax/ Deputy Commissioner of State Tax/ Assistant Commissioner of State Tax (CDC)/II/ Superintendent of State Tax (All)/ Inspector of State Tax (All) Subject: GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them regarding. The Government of India, Ministry of Finance, Department of Revenue vide Circular No. 154/10/2021-GST dated 17 June, 2021 has issued a clarification regarding GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax Act 2017 (Tripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 154/10/2021-GST dated 17th June, 2021 by the Government of India, Ministry of Finance Department of Revenue. (Dr. Vishal Kumar, IAS) Chief Commissioner of State Tax Government of Tripura Encl: Circular No. 154/10/2021-GST Circular No.154/10/2021-GST CBIC-190354/36/2021-TRU Section-CBEC Government of India Ministry of Finance Department of Revenue North Block, New Delhi, Dated the 17th June, 2021 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Sub: GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them reg. Certain representations have been received requesting for clarification regarding applicability of GST on supply of service by State Govt. to their undertakings or PSUs by way of guaranteeing loans. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021. 2. Entry No. 34A of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 exempts Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the banking companies and financial institutions . 3. Accordingly, as recommended by the Council, it is re-iterated that guaranteeing of loans by Central or State Government for their undertaking or PSU is specifically exempt under said entry No. 34A. 4. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board. Yours faithfully, Shashikant Mehta Technical Officer (TRU) Email: [email protected]