Taxation Of Services Under GST

The GST Council, on the second day of its 2-day meeting in Srinagar, has considered and finalised GST to be applicable for different types of services. Some key aspects related to services of the meeting have been captured below:

• As against expectations, the government has finalised four tax rates that will apply to services, namely 5%, 12%, 18% and 28%.
• Education and Healthcare services to be exempt under GST
• Transportation services to be taxed at 5%
• Aggregators like Ola and Uber to be taxed at 5%
• Economy class air travel to attract 5% GST and business class 12%
• Complications which currently exist at the time of charging tax on Works Contract should be eased with Works Contract set to be taxed at 12%.