There is no safe universal list that assigns every service to 5%, 12%, 18% or 28% without conditions. Identify the exact service, bundled supply, recipient, place, value, effective date and ITC condition in the current rate notification.
Current law before inherited content
The supplied draft was used as a topic brief, not as legal authority. Competitor promotions, duplicated wording, obsolete examples and unsupported claims have been removed. Always verify the effective notification and the facts of the transaction before acting.
Review status: Professional review pending. This general guide is not a legal opinion, tax computation, audit conclusion or filing instruction for a specific person.
How service rates are determined
Start with Notification 11/2017-Integrated Tax (Rate), as amended, and exemption Notification 9/2017-Integrated Tax (Rate), with the CGST counterparts. Match the description and conditions—not only the SAC heading.
SAC versus HSN
SAC classifies services; HSN classifies goods. Mixed or composite supplies require principal-supply analysis, while artificially splitting a naturally bundled contract can create incorrect rates and invoices.
Common rate bands
Nil, 5%, 12%, 18% and 28% entries exist, but many are highly conditional. Transport, accommodation, restaurants, construction, leasing, financial services and entertainment have changed over time; old hotel-price and restaurant-AC lists are unreliable.
Exemption and zero rating
Healthcare and education exemptions are defined, not sector-wide blankets. Exports and authorised SEZ supplies can be zero-rated when statutory conditions are met. Zero rating and exemption have different input-credit consequences.
Loans, interest and fees
Interest on many loans is exempt, but processing, documentation, foreclosure and other service charges may attract GST. GST is imposed on the taxable fee, not automatically on principal repayment; verify the exact charge.
Practical classification file
Retain the agreement, statement of work, recipient status, place-of-supply analysis, SAC rationale, effective notification, ITC condition and invoice sample. Review the file whenever the contract or law changes.
Need a fact-specific compliance review?
Map the applicable law, effective date, documents, filing route and ongoing obligations before relying on a general article.
Request a TargoLegal reviewFrequently asked questions
Is every unlisted service taxed at 18%?
18% is a common residual position, but first check specific rate and exemption entries.
Are healthcare and education fully exempt?
No. Only defined services and conditions qualify.
Does GST apply to loan principal?
Generally the taxable focus is service charges; interest has specific exemption treatment.
Can I use an old rate chart?
No. Verify the notification effective on the supply date.
What if goods and services are bundled?
Apply composite or mixed-supply rules based on the facts.
