GST (Post-2017) vs Service Tax (Pre-2017)
GST vs Service Tax — how India's service taxation changed
Overview
Service Tax was India's central tax on services until it was subsumed into GST on 1 July 2017. Service Tax was charged at 15% (with Swachh Bharat and Krishi Kalyan Cess); GST on services ranges from 0% to 18% (with some at 28%). The shift also brought ITC across goods and services.
Head-to-Head Comparison
| Factor | GST (Post-2017) | Service Tax (Pre-2017) | Winner |
|---|---|---|---|
| In Force? | Yes — since 1 July 2017 | No — abolished from 1 July 2017 | A wins |
| Standard Rate on Services | 18% for most services | 15% (12.36% + cess) | Tie |
| ITC on Inputs | Full ITC on goods and services | Limited CENVAT credit — no goods ITC | A wins |
| Threshold for Registration | ₹20 lakh (₹10L for some states) | ₹10 lakh | A wins |
| Administration | GSTN portal — unified | Service Tax department — separate | A wins |
Data updated for FY 2025–26. Regulations may change — consult a professional before deciding.
Which Should You Choose?
Choose GST (Post-2017) if…
GST is the current tax. All service providers must comply with GST — Service Tax is no longer in force.
Get GST (Post-2017)Choose Service Tax (Pre-2017) if…
Service Tax is historical — relevant only for pending disputes, refunds from pre-July 2017 periods.
Still not sure which to choose?
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Talk to an Expert — FreeFrequently Asked Questions
Common questions about GST (Post-2017) vs Service Tax (Pre-2017)
No new Service Tax returns are required after July 2017. However, businesses with outstanding Service Tax dues or pending refunds from pre-GST periods must still interact with the Service Tax department for those legacy matters.
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