The general rate of IGST on Services is 18% and is applicable on banking and insurance services, courier and postal services, gas and water distribution services, legal and accounting services, telecommunication services, R&D services, software.
Some of the important GST rates on services as on 1-10-2019 are as follows:-
Exempted Services
Lets first talk about the services which are exempted from GST. Here are the exempted services, namely:-
- Pure labour services (or where material content is not more than 25%) to Government, local authority, Government Entity relating to constitutional responsibilities
- Services provided by Government (where reverse charge is not applicable)
- Specified charitable activities (mainly relating to religion, public health, preservation of environment)
- Transfer of going concern as a whole or independent part thereof
- Toll for road or bridge (service of collection of toll will be taxable)
- Interest on loans, deposits or advances (other than credit cards)
- Renting of precincts of religious place by charitable trust (Exempt up to a limit )
- Renting of residential dwelling for use as residence
- Services by recognized educational institutions to students faculty and staff
- Health care and medical services
- Public Conveniences
- Conducting of Religious ceremony
- Services of housing society and Resident Welfare Association to members (Exempt upto Rs. 7500 per member per month )
Other services on which GST is applicable are as follows:-
| Nature of Service | GST Rate |
| Service Code – 9954
| (A) in Residential Real Estate Project – · CGST 2.5% · SGST/UTGST 2.5% · In total 5% without ITC
(B) Other than Real Estate Project – · CGST 6% · SGST/UTGST 6% with ITC (where value includes land value) |
| Service Code – 9954 Residential apartments | (A) For affordable residential apartments · CGST 0.5% · SGST/UTGST 0.5% · In total 1% without ITC (B) For Other residential apartments where value includes land value · CGST 2.5% · SGST/UTGST 2.5% · In total 5% without ITC
|
| Service Code – 9954 Works contract of immovable property | (A) 18% with full ITC (B) 12% in case of specified infrastructure related works contracts |
| Service Code- 9954 Supply and erection of solar power plants, wind mills, waste energy plants, bio gas plants | A) 5% on 70% of value B) 18% on 30% of value |
| Service Code- 99631 Accommodation Service | Renting of hotels, inns, guest houses, clubs, campsites, commercial places for residential or lodging (A) If daily value less than or equal to Rs. 1,000 – NIL(B) If value above Rs. 1,000 but less than or equal to Rs. 7,500 perday – 12% with full ITC(C)If value above Rs. 7,500 – 18% with full ITC |
| Service Code – 99633 Food and drinks | (1) 5% without ITC in restaurants, canteens, railway platforms, in trains, take away at places other than hotels having declared tariff above Rs. 7,500 (2) Event based outdoor or indoor functions that are occasional at places other than hotels having declared tariff above rs. 7,500 – 5% without ITC(3) Restaurants or outdoor catering in hotels having declared tariff of Rs. 7,50 or above 18% with full ITC |
| Service Code – 9964 Transport of passenger by air | (A) in business class or first class, GST rate if 12% with full ITC air transport in North East exempt (B) Economy Class – 5% |
| Service Code – 9964 Transport of passengers by road or rail | (A) 5% with ITC in following cases:- · Air Conditioned contract or stage carriage (exemption to non AC contract carriage, non AC stage carriage) · Radio taxi · By rail in Ac or first class (metro, second class and sleeper class exempt) (B) Transport of passengers in any motor vehicle designed to carry passengers where cost of fuel is included in the consideration charged from the service recipient is 5% without ITC (C) If fuel is supplied by recipient of service, the GST rate will be 18% (9% CGST and 9% SGST). This is the residual rate of tax
|
| Service Code – 9965 Transport of goods by rail and vessel | 1. 5% with ITC of input services only. 2. 12% in case of transport of goods by rail in containers (other than Indian Railways) |
| Service Code – 9965 Multi-modal transport of goods | 12% GST Rate
|
| Service Code- 99651 Goods transport by road, GTA i.e. Goods Transport Agency and transport of household goods | 5% without Input tax credit. Reverse charge in case of GST. The GST has option to pay GST @12% under forward charge with ITC |
| Service Code- 99653 Air transport of goods | (A) General Rate – 18% (B) Air transport of goods from out of India upto customs station in India |
| Service Code- 9971 Forman of chit fund | |
| Service Code- 9972 Lease of land for 30 or more years, TDR or Transfer of Development Rights | (A) Exempt if for residential apartments for sale before completion/occupancy certificate (B) In Other Cases-18% |
| Service Code – 9973 or 9971 Leasing of motor vehicle purchased and leased prior 1-7-2017 | Tax rate will be 65% of rate of supply of like motor vehicles involving transfer of title in goods |
| Service Code- 9973 or 9971 Leasing or renting of goods (other than aircrafts, vessels and leasing of vehicles purchased prior to 1-7-2017 | Same GST rate and GST compensation cess applicable on supply of like goods involving transfer of title in goods to similar goods |
| Service Code- 99732 Leasing of Aircraft | 5% with ITC of input services |
| Service Code- 99733 Right to use intellectual property | (A) Temporary or permanent transfer of IPR related services-12% with full ITC (B) Software service- 18% |
| Service Code- 9982 Legal services | (A) Exempt if supplied to another advocate, non business entity, Government or business entity with turnover less than Rs 20/10 lakhs (B) 18% in other cases-here reverse charge applies |
| Service Code- 99836 Sale of space for advertisement in print media | 5% with full ITC |
| Service Code- 99855 Tour operator service | 5% without ITC if bill is for gross amount including accommodation and transportation charges |
| Service Code- 9986 Support services to Agriculture, forestry, fishing, animal husbandry upto first stage | NIL |
| Service Code- 9987 Maintenance, repair and installation (except construction) services other than house keeping where tax is paid by electronic commerce operation @5% without ITC | 18% GST Rate is Applicable |
| Service Code- 9988 Job Work | (A) Printing of newspapers and books, textile items including garments, precious stones, jewellery, handicrafts, food items– 5% (B) Job Work on diamonds – 1.5% (C) Printing of newspapers, books and periodicals with own paper -12%(D) Tailoring – 5% (E) Bus body building – 18% (F) Other job work when inputs received from registered person – 12% (G) Other job work when inputs received from unregistered person – 18% |
| Service Code- 9996 | Services by way of right to admission to:- a) Circus, dance or theatrical performance including drama or balley b) Award function, concert, pageant, musical performance or any sporting event other than a recognized sporting event c) Recognized sporting event d) Planetarium where the consideration for admission is not more than Rs. 500 per per person – Exempt |
| Service Code-9996 Recreational, cultural and sporting services | (A) Admission to amusement parks including theme parks, water parks, joy ride, merry go rounds, go carting and ballet – 18% (B) Admission to entertainment events or access to amusement facilities including casionos, race club, any sporting event such as Indian Premier League and the like – 28% (C) Admission to exhibition of cinematograph films where price of admission ticket is more than one hundred rupees- 18% (D) Admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less- 12% (E) Admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama or planetarium- 18% (F) All other recreational cultural and sporting service- 18% |
| Service Code- 99969 Race course and gambling | (A) Race course and services if totalization or licenses bookmaker-28% with full ITC (B) Gambling-28% with full ITC |
GST Rates applicable in other Countries
If we talk about Europe, the EU VAT system is regulated by various European Union (EU) Directives. And the GST Rate applicable in Europe varies between 18% to 25%
In Singapore, the GST came into existence in April 1994 and initially the GST rate was 3%. And from 1-7-2007, the GST rate changed from 3% to 7%.
If we discuss the GST Rate applicable in Japan then, it is 5%.
In New Zealand, GST was brought in the month of October and year 1986. And the rate which is in continuance is 15% average rate.
In Austria, the GST rate applied is 20%
In Jordan, 16% is the applicable rate of GST
Australia attracts a GST rate of 10%
Malaysia having 6 % of the GST Rate
Canada attracts 5% of GST.
And till now, the USA has not introduced GST.
These were the GST Rates applicable on Services. Full efforts have been taken to simplify the GST Rate so that it becomes easy for readers to know how much GST is applicable on what all services.
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