Service Tax was a tax levied by the Central Government of India on certain services provided by service providers. Introduced in 1994, it was applicable to a wide range of services such as consulting, legal, hospitality, and more. Businesses offering taxable services were required to register for Service Tax, file periodic returns, and make timely payments to remain compliant.
However, with the introduction of the Goods and Services Tax (GST) on 1st July 2017, Service Tax was subsumed into the GST regime. GST brought together multiple indirect taxes, including Service Tax, VAT, and Excise Duty, into a single, unified tax system applicable across India. Under GST, service providers now charge Integrated GST (IGST), Central GST (CGST), or State GST (SGST) depending on whether the transaction is interstate or intrastate.
For businesses and entrepreneurs, this shift to GST has simplified tax compliance by offering a consolidated digital platform for registration, return filing, and tax payments. It also allows for better input tax credit utilization, thus reducing the overall tax burden. Understanding the transition from Service Tax to GST is essential for any business that was operational before 2017 or for those dealing with past tax assessments.
To ensure smooth compliance with current income tax and GST rules, small business owners can explore professional support options like those provided at fintax24.in, which offer expert guidance on filings, registration, and tax savings.
In summary, while Service Tax is no longer in use, its legacy has shaped the current GST framework, which now governs all service-related indirect taxation in India.