The increase in Service Tax rate will come into effect from 1st June, 2015. - Except (i) services provided by the Government or local authority to a business entity and (ii) Swachh Bharat Cess - Date in respect of these two shall be notified later.

Service tax rate increase takes effect, broadening taxable services to amusement admissions, alcohol contract manufacturing, and lottery services.

The Finance Act, 2015 increases the Service Tax rate effective 1 June 2015 and simultaneously withdraws the Education Cess and Secondary and Higher Education Cess from that date; concomitant rule amendments revise alternative rates for specified services. Amendments remove Negative List exclusions for admission to entertainment events and access to amusement facilities, and exclude alcoholic liquor production from the Negative List, thereby making admission/access services, contract manufacturing of potable liquor, and certain lottery-related distributor services subject to service tax. Government-to-business service taxation and the Swachh Bharat Cess are enabled but await notified commencement dates.