GST: Luxury, standard, basic tax slabs to replace current rate on services

GST Council plans three-rate service tax structure

Just as for goods, the goods and services tax (GST) Council is planning to bring different rates of tax for services as well. The highest rate would be for “luxury” services. 

This means, instead of a uniform rate of tax on all services, including cess and surcharge, there would possibly be three rates: luxury, standard and basic. It will be the first time since tax on services was introduced in July 1994 that there would be more than one rate for the tax.

The topic has been debated in the committee of secretaries set up by the GST Council that