Government makes two slabs for services under GST, with segments such as transport facing a lower levy compared to 18% tax on several services.

Govt. says that services such as transport, where fuel was a major component, could face a lower levy, with tax practitioners talking about a 12% tax on such services. several services, only a part of the fee is treated as service. For instance, when it comes to goods transport, service tax is levied on 30% of the bill. Currently, service tax is pegged at 15% but the actual levy in several categories is much lower.

Currently, several services a part of the fee is treated as service. For instance, when it comes to goods transport, service tax is levied on 30% of the bill. Currently, service tax is pegged at 15% but the actual levy in several categories is much lower.

Wherever public interest is involved, the government will have to ensure that the actual incidence does not rise much. This will include railways, construction, and restaurants.

Out of the GST net, transportation is a key service for the economy and a steep rise in the levy will push up transportation costs for the economy.