Some of the service contracts are set to be renegotiated under the goods and services tax (GST) framework as it levies different tax rates in some peculiar situations, service contract tax rates would be different if the service provider also provides raw material used to execute the contract. For example- if your plumber fixes your tap in your kitchen it could be taxed differently if the tap is brought by him or by you.

This will impact several sectors like infrastructure and real estate. In some cases the contracts are already being renegotiated.