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GST Council Fixes Tax Rates for Services

GST Rate for Services Fixed

The tax rates for majority of the services have been fixed by the GST Council on May 19, with most of the services falling under the 18% slab which will not affect the common man much as the effective tax incidence will come down. The major winners were the education and healthcare services as they have been kept out of the tax net while insurance and banking services; telecom, IT and restaurants (having air conditioning or serving alcohol) will fall under the 18% tax bracket.

However, the Finance Minister, Arun Jaitley pointed out that the weighted average of services taxation would be close to 15% instead of 18% since the service providers would be able to avail input tax credit.

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