What services are excluded from the new 8 per cent Service Tax?

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Services Excluded from the 8 Per Cent Service Tax

The Service Tax rate is set to increase from 6 per cent to 8 per cent, however, this revised rate will not apply to food and beverages, nor will it encompass telecommunications services. These specific sectors have been explicitly exempted from the upcoming tax adjustment.
Food and Beverage Sector Exemption

The forthcoming increase in the Service Tax to 8 per cent will not affect the food and beverage industry. This means that consumers will not see a change in the service tax applied to their restaurant bills or purchases of food and drink items.
Telecommunications Services Not Included

Similarly, telecommunications services have been excluded from the enhanced Service Tax rate. This implies that the cost of mobile plans, internet services, and other communication-related offerings will remain unaffected by the 8 per cent Service Tax.
Expansion of Taxable Services

While certain services are excluded, the scope of services subject to the Service Tax is also being expanded. This includes the addition of logistics, brokerages, and karaoke services to the list of taxable offerings.

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What services are excluded from the new 8 per cent Service Tax?

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