Exemption in relation to Services provided by government Exemption Entry 34A & 47 - GST Ready Reckoner - GST

Exemption by way of Guarantees provided by government against guaranteed commission Exemption Entry 34A Services supplied by state government , central government , union territory to their undertaking or Public sector undertaking (PSU) by way of guaranteeing the loans taken by such undertakings or PSU from the banking and financial institutions are exempt Few Clarifications as per Circulars Issues Held that Earlier Whether GST is levied on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them. It is clarified in Circular 154/10/2021 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. As Per Circular 34/08/2018 the service provided by Central Government/State Government to any business entity including PSUs by way of guaranteeing the loans taken by them from financial institutions against consideration in any form including Guarantee Commission was taxable Exemption Entry 47 Registration testing services Provided By Government Services Provided by Central Government, State Government, Union Territory or local authority by way of- registration required under any law for the time being in force; testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, including fire license, is exempt; Scope The scope of the exemption is subject to some restrictions which can be easily understood from the following table: Who is eligible What specifically is exempt Limits for exemption. Any Person who has received the specified services from Central Government, State Government, Union Territory or local authority Services Provided by way of- registration required under any law for the time being in force; testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, including fire license , required under any law for the time being in force; The exemption is limited only where the services are provided by the Government or local authority and the amount is payable to the Government or local authority Example M/s ABC Limited applied for a No objection Certificate from the Fire authorities for his factory and paid 5,000/- as application fees. As fire services are provided by the Local Authority or the State Government, which is specially covered under the specified services in the exemption entry, no GST would be leviable on the fee of 5,000/-.