Services under

GST
By: Simran Jain
Assistant Professor
GIBS, ROHINI
GST is applicable on supply of goods or
service or both. Article 366(12) of the
Constitution defines “goods” to include all
materials, commodities and articles. The
Constitution (101 Amendment) Act, 2016
inserted in clause 366(26A) the definition
of “services” to mean anything other than
goods.

Services under GST

“Services” means anything other than
goods, money and securities but includes
activities relating to the use of money or its
conversion by cash or by any other mode,
from one form, currency or denomination, to
another form, currency or denomination for
which a separate consideration is charged.

Services
When it is said ‘anything’ other than goods is
service, it is important to know what is the
meaning of ‘anything’? Whether anything
means everything? If so everything other than
goods is service and accordingly liable for GST
unless it is exempted.

 Ifit so, can we say, the followings are

service?

 a.X robs Mr. Y. Whether Mr. Y received the

service of Mr. X?
 b. Wife beats her husband. Can we say
husband received service from his wife?

c. A encroaches the vacant plot of Mr. B.

Is Mr. A providing service to B?

d. P bangs his car to Mr. Q and pays him

compensation. Is Mr. Q is providing
service to Mr. P?
Like this there are numerous
activities/transaction between two persons
in day to day life. Whether all these can
be termed as service? Schedule III to the
CGST Act states certain
activities/transactions are neither supply
of goods nor supply of service. These
activities/transactions are excluded on
account of economic and social criteria
and in the interest of the general public.
GST council 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% come with
various pros and cons for the consumers.
However, government has exempted
healthcare and educational services from
the purview of the GST.
4 Tier Structure: GST Rates
– Services
Tier – I  (5% Tax Slab) :Railways-Transportation
of goods, passengers
Goods transported in a vessel from outside India
Renting a motor cab without fuel cost
Transport services in AC contract/stage or radio
taxi
Transport by air
Tour operator services
Leasing of aircrafts
Working for printing of newspapers

Tier-1
Tier – II (12% Tax Slab) :Rail transportation of goods in
containers from a third party other than Indian Railways
Air travel excluding economy
Food /drinks at restaurants without AC/heating or liquor
license
Renting of accommodation for more than Rs.1000 and
less than Rs.2500 per day
Chit fund services by foremen
Tour operator services
Leasing of aircrafts
Construction of building for the purpose of sale
Intellectual Property rights on a temporary basis

Tier – II
Tier – III
Tier – III ( 18% Tax Slab) :Food/drinks at
restaurants with liquor license
Food /drinks at restaurants with AC/heating
Outdoor catering
Renting for accommodation for more than
Rs.2500 but less than Rs.5000 per day
Supply of food, shamiyana, and party
arrangement
Circus, Indian classical, folk, theatre, drama
Supply of works contract
Movie Tickets over Rs. 100
Hotel accommodation for transaction value per
unit per day being with Rs 2,500-7,500 tariff 
Tier – IV
Tier – IV (28% Tax Slab) :Entertainment
events-amusement facility, water parks,
films, theme parks, joy rides, merry-go-
round, race course, go-carting, casinos,
ballet, sporting events like IPL
Race club services
Gambling
Food/drinks at AC 5-star hotels
Accommodation in 5-star hotels or above
Hotel accommodation for transaction value
per unit per day being Rs. 7501 or more