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Abhishek Chakravarti
BFSI Writer
Abhishek is a financial writer with over 6 years of experience in the BFSI sector. Prior to his current stint with Axis Max Life Insurance, he has worked with leading fintech startups. He specializes in writing about taxation and various investment products like ULIPs, retirement plans, guaranteed investment plans, mutual funds etc.
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Sahil Rawal
BFSI Expert
Sahil Rawal is a digital & brand management specialist with over 10 years of experience in Financial Services Industry. Life insurance professional with expertise in digital marketing strategy, website content marketing and brand communication designed to increase brand awareness, drive engagement & sales.
Before knowing about the different GST rates for services in India, discussed below are some of the types of services that fall under the GST purview. While some of the services are limited to one slab rate, others can have multiple GST rates based on the nature of the service.
The GST council used the 4-Tier model to classify the GST rates for services in India. These slab rates are 0%, 5%, 12%, 18%, 28%. Refer to the table below to know the different tiers, along with examples of some of the corresponding services falling under them.
| Tier Type | Slab Rate (%) | Examples of Services |
|---|---|---|
| NIL | 0 | Services offered by any unit registered under section 12AA of the Income Tax Act, services offered by state governments, central governments, local governing authorities, pure labour contracts of commissioning, construction and completion, services of Securities and Exchange Board of India to protect the interest of investors |
| Tier-I | 5 | Rail transportation of passengers and goods, air transport, newspaper printing, services provided by tour operators etc. |
| Tier-II | 12 | Rail transportation of container-based goods by third parties and not the Indian Railway, chit fund services by foremen, rent accommodation exceeding Rs. 1000 etc. |
| Tier-III | 18 | Drinking and dining at restaurants with liquor, supply of works contracts, movie tickets exceeding Rs. 100, rent for accommodation exceeding Rs. 2,500 but lesser than Rs. 5,000 etc. |
| Tier-IV | 28 | Gambling, race club, amusement park and other entertainment events, 5-star hotel accommodations etc. |
Now, let’s take a look at the GST rates for services based on the different service categories discussed earlier.
| Type of Service | GST Rate (%) |
|---|---|
| Construction of buildings and complicated civil structures with the purpose of selling | 12 |
| Others | 18 |
| Type of Service | GST Rate (%) |
|---|---|
| Consultancy in investments, finance, healthcare, etc. | 18 |
| Type of Service | GST Rate (%) |
|---|---|
| Auditing, accounting, bookkeeping and other representational services offered by chartered accountants, cost accountants, and company secretaries | 18 |
| Advisories, consultation and representational services offered by advocates and other legal professionals | 18 |
| Dental, cosmetic surgeries, hair transplants and other appearance enhancement treatments offered by dentists and doctors | 18 |
| Engineering services | 18 |
| Services offered by film artists | 18 |
| Industrial, fashion and other speciality designers | 18 |
| Services by private tutors and coaching centres | 18 |
| Type of Service | GST Rate (%) |
|---|---|
| Courier services excluding postal services | 18 |
| Type of Service | GST Rate (%) |
|---|---|
| Educational events which are organised in India by a foreign entity with the service recipient hailing from industry, commerce, or any other profession | 18 |
| Commercial coaching unit-mediated training services | 18 |
| Type of Service | GST Rate (%) |
|---|---|
| Internet telecommunications | 18 |
| IT services | 18 |
| Repair, installation, and maintenance | 18 |
| Others | 18 |
| Type of Service | GST Rate (%) |
|---|---|
| Personal loan | 18 |
| Home loan | 18 |
| Car loan | 18 |
| Insurance Category | GST Rate (%) |
|---|---|
| ULIPs | 18% on Charges portion |
| Term Insurance Plans | 18% |
| Health Insurance Plans | 18% |
| Endowment Plans |
4.5% (1st Year Premium) 2.25% (2nd Year Premium onwards) |
| Single Premium Annuity Plans | 1.8% (on lump sum paid) |
Given below are some of the services exempted from GST across different domains:
Please note that this is not an exhaustive list of GST exemptions.
ARN: Oct23/Bg/16N
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