Published On : Sat, May 30th, 2015

Hike in service tax to pinch people, List of products to get costlier and cheaper from June 1

Nagpur: Get ready to pay more for various services from June 1. The hike in service tax will have a sweeping effect on a slew of goods and services. Service tax has been increased from 12.36 per cent to 14 per cent and the hike will be applicable from June 1.

The notification comes after the passage of the Finance Bill earlier this month.

The hike in the service tax was part of proposals in Budget 2015-16. The proposal was made by the government to facilitate the roll out of national goods and services tax, expected to be imposed from April 2016.

Eating out in the restaurants, hotel stay, mobile bills, vehicles, consumable goods, travel by air, marriage venues, cable service salon and beauty parlour visits and other leisure activities will now cost more. Service tax will be levied on all services rendered, except those on a small negative list.

The increase in service tax is expected to hit tourism, information technology, pharma, logistics, realty and the auto sector. The increase has evoked a sharp reaction from the city people.


  • Cigarettes and other tobacco products
  • Completely built imported commercial vehicles
  • Cement
  • Aerated, flavoured drinks and packaged water
  • Plastic bags and sacks
  • Business and executive class air travel
  • Visit to amusement and theme park
  • Music concerts
  • Liquor, chit fund and lottery


  • Leather footwear priced above Rs 1,000 per pair
  • Locally made mobile phones, LED/LCD panels, LED lights and LED Lamps
  • Solar Water heater
  • Pacemakers, ambulance and ambulance services
  • Computer tablets
  • Agarbattis
  • Microwave ovens
  • Refrigerator compressors
  • Peanut butter, packaged fruits and vegetables
  • Visit to museum, zoo and national park.
  • Life insurance scheme Varishtha Pension Bima Yojna