Section Article

INDIAS SERVICE TAX
Author(s): Dr. Raj Tilak

Abstract
Service tax in India has historically been one of the pivotal indirect taxes applied to services provided by individuals and organizations across diverse sectors contributing substantially to the nation’s revenue system. Introduced under the Finance Act of 1994 service tax marked the governments strategic effort to widen the tax base and modernize indirect taxation by targeting the burgeoning service sector which had experienced significant growth due to liberalization and economic reforms post-1991. Over time service tax coverage expanded to include a variety of services ranging from telecommunications banking and insurance to professional consultancy hotels and information technology services. This paper examines the evolution structure administration and impact of service tax in India analyzing its effectiveness in revenue mobilization compliance challenges and implications for service sector stakeholders. Furthermore the study investigates the role of different policy measures exemptions and amendments in shaping service tax dynamics and explores the transition to the Goods and Services Tax (GST) framework highlighting lessons learned and policy insights. By adopting both qualitative and quantitative approaches including statutory analysis case studies and revenue data evaluation this research provides a comprehensive understanding of India’s service tax regime and its broader economic and regulatory significance.