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No increase in service tax even if GST rollout delayed
February, 08th 2017

The government on Tuesday made it clear that it would not increase service tax even if the Goods and Services Tax is not implemented on time. The announcement comes days after Finance Minister Arun Jaitley left certain indirect taxes including service tax untouched in the Budget owing to impending GST.

“The government is not thinking of hiking service tax even if the proposed GST rollout is delayed,” Minister of State for Finance Santosh Kumar Gangwar said.

He, however, said that the government was taking steps to expedite GST and bring states on board by addressing their concerns.

The GST Council has held nine meetings so far, and has made recommendations with respect to thresholds, tax rates, GST rules, treatment of existing tax incentives, draft GST compensation law and model GST Law for implementation of GST.

“All the decisions taken by the Council so far have been based on consensus. The government is making concerted efforts in the form of IT readiness, rigorous consultations, workshops and training sessions for the industry and traders, and all other stake holders involved,” he said.

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