Rail travel, capitation fees/donations in educational institutes and non-compete services are among the many new services that may come under the proposed Goods and Services Tax (GST), says a concept paper on the issue.
The new service may come under the GST as a result of transition towards the negative list, the Concept Paper prepared by the Tax Research Unit of the Department of Revenue in the Finance Ministry.
It says some of the notable services that could come under the GST are: services provided by government for a fee or user-charge, transportation of passengers by the railways, renting of vacant land for commercial use, excluding agriculture purposes, capitation fees or donation in education institutes, non-compete services, some additional services relating to construction and real estate.
The negative list contains 27 services including funeral, burial and mortuary agencies, interest paid on deposits by bank, services provided by independent journalists, dividend on investments, and transport of passenger in public transport are excluded from paying tax.
The government has invited feedback, views and suggestions by September 30 on the Concept Paper prepared by a team of officers with inputs from industry bodies like the Confederation of Indian Industry, the Federation of Indian Chambers of Commerce and Industry, the Associated Chambers of Commerce and Industry of India and the PHD Chamber of Commerce and Industry.
