Right after the GST rates for goods, another meeting held on May 19, 2017 at Srinagar, Jammu & Kashmir, headed by Finance Minister Arun Jaitley, approved the GST rates for services. The rates for services were finalised the four- slab structure i.e. 5%, 12%, 18%, 28%.

A larger number of fast- food joints, which are unclear which way their annual turnover will swing, may choose to collect 12%, Hindustan Times.

Those services already exempted from tax, such as healthcare and education, will continue to enjoy the concession.

Finance Minister ‘Arun Jaitley said the net effects of Goods and Services tax will not be inflationary’ and also added The weighted average and given the large number of exemptions, the impact (inflationary) will be significantly below that. Keep one fact in mind that they will also start getting the input credit of goods consumed,” he said.

In this write-up, rates for services as approved by GST Council are covered.

Below is the Schedule of GST rates for services as approved by GST Council

Slab Rate Slab Rate
5% ITC availability 12% ITC availability
Transport of goods by rail Yes Transport of goods in containers by rail by any person other than Indian Railways Yes
Transport of passengers by rail (other than sleeper class) Yes Transport of passengers by air in other than economy class Yes
Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use] No Supply of Food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having licence to serve liquor Yes
Services of goods transport agency in relation to transportation of used household goods for personal use. No Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day Yes
Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India Yes Services provided by foreman of chit fund in relation to chit Yes
Renting of motorcab (If fuel cost is borne by the service recipient, then 18% GST will apply) No Construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. [The value of land is included in the amount charged from the service recipient] Yes, but no refund of overflow of ITC
Transport of passengers, by- (i) Air conditioned contract/stage carriage other than motorcab; (ii) a radio taxi No Temporary transfer or permitting the use or enjoyment of any Intellectual Property (IP) to attract the same rate as in respect of permanent transfer of IP; Yes
Transport of passengers by air in economy class Yes
Supply of tour operators’ services No
Leasing of aircrafts under Schedule II [5 (f)] by a scheduled airlines for scheduled operations Yes
Selling of space for advertisement in print media Yes
Services by way of job work in relation to printing of newspapers; Yes

18% ITC availability 28% ITC availability
Supply of Food/drinks in restaurant having licence to serve liquor Yes Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as IPL and the like; Yes
Supply of Food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year Yes Services provided by a race club by way of totalisator or a licensed bookmaker in such club; Yes
Supply of Food/drinks in outdoor catering Yes Gambling; Yes
Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/ and above but less than Rs 5000/- per room per day Yes Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel Yes
Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises Yes Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 5000/- and above per night per room Yes
Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama Yes
Composite supply of Works contract as defined in clause 119 of section 2 of CGST Act Yes

 

All other services not specified elsewhere Yes

Following are the description of the Services which has Same rate of GST and compensation cess as on supply of similar goods:

  • Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration (supply of service) to attract the same GST rate and compensation cess as applicable on supply of similar goods which involves any transfer of title in goods (supply of goods)
  • Any transfer of right in goods or of undivided share in goods without the transfer of title thereof (supply of services) to attract the same GST rate and compensation cess as applicable on supply of similar goods which involves any transfer of title in goods (supply of goods).
  • Supply consisting of transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed (supply of goods): value of leasing services shall be included in the value of goods supplied.

Transport services including air services and goods transport will be taxed at 5 percent from the existing 15 percent, raising prospects of lower air fares after GST’s roll-out from July 1.

It was expected that the Council will also finalise tax rates for gold, gold jewellery today itself but it has put the decision on hold till its next meeting scheduled in June this year.

Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com

Disclaimer:

The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

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12 responses to “GST Rate Card for Services”

  1. charteredaccountantsinmohali says:

    Hi,
    Great info on GST.!!! thanks keep up the work

  2. ANKIT MISHRA says:

    NEED TO ASK YOU THAT IF A COMPANY WANT TO SUPPLY A CERAMICS GOODS AND SANITARY WARE TO AMKE A DELIVERY ON 01-07-2017 AND THE BILL HAS BEEN ISSUED ON 30-06-2017, IS THAT COMPANY WILL BE LIABLE FOR ANY PENALTY AGAINST GST ACT…

  3. victor castellino says:

    what is the GST charges for security services

  4. Prem Sharma says:

    We are contractor and providing services of Packing and loading job and two location i.e. in Punjab and Himachal Pardesh. Should we got GST No. for both states or Can we raise our Bills from Main office which is situated at Ropar.

  5. sanjay says:

    where it is mentioned that transport of goods by air is at 5% tax rate.

    • Ekta Maheshwari says:

      Sanjay, with response to your query, I have no where mentioned that transport of goods by air is at 5% tax rate.

  6. manohar lal mehta says:

    how much gst tax impose on textiles item i,e shirting suitings non vat item and on ready made garments
    pls clear it

    • Nikhil says:

      Manohar Lal Ji till now Tax Rate on Textiles Item are not announced, so please wait for further notification.

    • Ekta Maheshwari says:

      Hi Manohar,
      With response to your query, since the textile tax rates are no where mentioned so far, so we have two options, either we can wait for the rates or we we can catagorise the same in ‘All other services not specified elsewhere’ i.e. 18%.

  7. Mr. Arvind Chaudhari Victory precisions Pvt Ltd. says:

    what about GST rate regarding Labour contractor

    • Nikhil says:

      Dear Sir Any services which are not specified elsewhere are charge at 18% with Full ITC

    • Ekta Maheshwari says:

      Hi Arvind,
      Firstly, it depends on which type of service under labour contractor i..e technical, inspection etc. and also the rate of the same has not been mentioned yet, so, either we can wait for the rates or we we can catagorise the same in ‘All other services not specified elsewhere’ i.e. 18%.

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