GST vide Circular No. 154/10/2021 dated 17th June, 2021 has mentioned that 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 are exempt.
https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_154.pdf