GST for services- Are you running a service based company?
GST for services:
GST: A like goods, GST for services are also been classified. They are nil,5%, 12%,18%,28%. Here there are many service industries that are been classified and made under one platform, one stage wherein the tax is being allotted based on the category they fit in.
The detailed structure of the services that are being allotted under the four slots and being classified. The detailed description about the services that are under the slots is given in the pdf linked above.
There are few exemptions and few services that are not listed under. GST for services well the transportation is acquiring the least slot of 5% wherein most of the advantages are acquired and all the luxury services are under the 28% slot where in the air-conditioned restaurant, 5 star hotels, gambling etc gets included.
And all the other services that are not been mentioned anywhere will fall under the 18% slot and will be applied though
When we consider the services industry in India, its huge and there are many sections in it. If we consider all the sectors there are approximately 7 per cent those are exempted, where as 14 per cent are in the 5 per cent slab, 17 per cent of services are in the 12 per cent slab, 43 per cent lies in the 18 per cent slab, and 19 per cent of goods are into the top tax bracket of 28 per cent.
Apart from the percentage slabs, Rail, air and road transport will fall in the 5 percent tax slab, Telecoms and financial services at a standard rate of 18% will be taxed. Your restaurant visits, movie dates, visits to the salon and even your phone bills will be rated under taxation.
Whereas when talking about Hotel services, Hotels with tariff between Rs 2,500 to Rs 5,000 will attract a GST of 18 per cent, whereas hotels with tariff of above Rs 5,000 will fall under the 28 per cent tax slab, hotels with tariff under Rs 1,000 are exempt from the GST regime.