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A Complete List of GST Rates for Services 2017

A Complete List of GST Rates for Services 2017

by Sanjeev Archak

The GST Council has decided the GST rates for services and with this GST is one step closer to being rolled out on 1st July 17.

The Finance Minister of India, Mr. Arun Jaitley, who is also the chairman of the GST council, said that the next council meeting will be held on June 3rd.

“Most work in relation to rollout is now complete… only a few things remain,” Mr. Jaitley added. Here’s a complete list of GST rates for Services as decided by the GST council.

GST Rates for Services 2017

The four tax slabs for services are in line with that decided for goods — 5%, 12%, 18% and 28%. A total of only 5 services will attract a levy of 28% percent, these include movie tickets, 5-star hotels, betting related to casinos and racing.

Services under No Tax

Any activity related to Healthcare and Education continue to be exempted under GST law. Other services included in this list are – Non AC Train Fares, Fares for Metro, Tickets of Local Trains and Tariff of Hotels that are priced under Rs 1,000.

Services under 5% Tax

These include the Fares of an AC Train Travel, the fare of an Economy Air Travel and Cab fare that includes Ola and Uber.

Services under 12% Tax

The services under this tax bracket are the fare of an air travel in business class and Non AC hotel tariff.

Services under 18% Tax

“The default or standard rate for services under GST would be 18%.” – Arun Jaitley

Services that fall under the 18% bracket include financial services like banking & insurance, those of telecom and information technology, government services like spectrum auction, etc.

The list also includes the Tariff of A/C Hotels and those ranging in between Rs 2,500 – Rs 5,000, Hotels and bars that are serving alcohol.

Services under 28% Tax

These include services by way of admission to entertainment events or access to amusement facilities including the exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go-rounds, go-carting, casinos, race-course, ballet, any sporting events such as IPL etc. The Accommodation in hotels including 5 stars and above where the room rent is Rs 5000 and above for one night per room also fall under this bracket.

Not many losers?

While the new indirect tax regime is expected to cause disappointment in the first few quarters in terms of earnings, the benefits are expected to be visible only after the following year. A research by CRISIL, a global analytical company providing ratings, said that it will take around 6 months for industrial stabilization after GST is rolled out but gains from the biggest indirect tax reform will take up to 3 years to materialize.

It further added that a few segments of FMCG and automobile companies will witness a positive impact due to lower tax incidence. The image below by the Economic Times gives a preview of the winners and losers under GST.

 

A complete list of GST rates for Services along with their exemptions as approved by the GST council can be found below.

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