Is GST Applicable On Services?

Is GST applicable on service charges?

One such case is the applicability of tax on service charge and ambiguity remains on whether it can be taxed under Goods & Services Tax (GST) or not.

Technically GST can be levied on service charge, if it is part of the total bill, as rules make it clear that any fee or charge, until exempted, will be taxable..

What are GST exempted categories?

Exempted Goods in GST exemption listFood. Fruits and vegetables, cereals, meat and fish, potatoes and other edible tubers and roots, tender coconut, tea leaves, jaggery, coffee beans, ginger, turmeric, milk, curd, etc.Raw materials. … Tools/Instruments. … Miscellaneous.

Who needs to pay GST?

You must collect and pay GST when your turnover in a financial year exceeds Rs. 20 lakhs. [Limit is Rs 10 lakhs for some special category states]. These limits apply for payment of GST.

What is the GST rate on freight charges?

5%GST RATE ON FREIGHT CHARGES – The rate of GST on freight charges is 5%.

What is GST rate for services?

GST Rates for Services Government has also imposed GST on Services with the same 4-tier tax structure as of goods. GST rates on services comprising of 5%, 12%, 18% and 28% comes with various pros and cons for the consumers.

Is service tax mandatory after GST?

So, as per law, Service Tax has been phased out by GST and customers are not supposed to pay it. However, the Service Charge is still applicable.

What services are GST exempt?

Some examples of GST/HST exempt goods and services are:Used residential housing (GST/HST is only charged on new or “substantially renovated” residential housing. … Residential rental accommodation if equal to or greater than one month duration.Music lessons.More items…

Is delivery charges taxable under GST?

Answer: The tax should be charged on the total value of supply. If the transportation cost is included, then GST has to be charged at the same rate of tax charged on supply. For example: If the goods being supplied is charged at 18%, then you have to charge tax on transport cost also at 18%.

What is place of supply of services in GST?

In general, the place of supply for services will be the location of the service recipient (the recipient needs to be a registered person). In cases, where service is provided to an unregistered person, the place of supply will be the: Location of the service recipient (if the address is available on record);

Can I refuse to pay a service charge?

Compulsory service charge. … In essence you have the right to refuse to pay the service charge in either circumstance if the service falls below a reasonable standard. If a service charge is compulsory, the restaurant must make this clear before you eat.

Is GST applicable on courier services?

GST Rate levied on courier services and courier agencies. Courier services categorised under SAC Code 996812 will be taxable at 18% GST. … SAC Code 996812 will be payable at 18% GST.