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India agreement on Services GST rates

  • May 19, 2017 | Richard Asquith

India agreement on Services GST rates

The Indian Goods and Services Council, which is concluding a range of issues for the 1 July 2017 launch of GST, has agreed 4 indirect tax rates on Services.  The principle standard VAT rates will be 18% and 12%.

The current effective VAT rate on Services in India is approximately 18%.

The new GST rates on Services include:

  • 28% All Other Services, Accommodation above Rs 5,000 per night, Cinema tickets, consumer durables,TVs, Air Conditioning, Automobiles, Cement, Chocolate
  • 18% Telephony, Banking, Insurance, Accommodation between Rs 2,500 and Rs 5,000 per night, Restaurants with alcohol license, Entrance to Cultural and Entertainment events, Capital Goods, Heavily Processed Foods;
  • 12% Restaurants (non-air conditioned), Business Class air travel, Construction Intellectual Property temporary transfers, Dried Fruit, Confectionery
  • 5% Privately-provided Transport including Car Sharing, Advertising, Sugar, Tea and Coffee, Cooking Oil
  • Exempt Public Services, Healthcare, Education, Public Transport, Accommodation below Rs 1,000 per night, Central Bank services, certain Agricultural services, Road Tolls, Residential lettings, Life Insurance, Admission to Public Museums and Related Activities, Leasing Agreements, Bank Current Account services, Milk, Dairy Products, Bread, Grains, Cereals

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.