In the Union Budget, 2015, an increase in the rate of Service Tax from 12% to 14% had been proposed from a date to be notified. The Finance Bill, 2015 has since been enacted and the Central Government has notified 1^st  June, 2015 as the date from which the rate of 14% would become applicable. The provisions levying Education Cess and Secondary and Higher Education Cess would also cease to have effect from same date i.e. 1st June, 2015, as the same would be subsumed in the service tax rate of 14%. Certain other changes have also been notified with effect from 1^st  June, 2015.

However, the date of giving effect to the provisions relating to imposition of a Swachh Bharat cess on all or any taxable service will be done in due course.

Service tax rate increase notified, with education cesses subsumed and effective date specified; Swachh Bharat cess timing pending. Increase in the service tax rate to 14% is notified to take effect from 1 June 2015, implementing the Finance Bill, 2015 proposal and setting the operative date for the revised rate. Concurrently, the Education Cess and Secondary and Higher Education Cess cease to have effect from the same date as they are subsumed within the revised service tax rate, while the date for imposition of a Swachh Bharat cess will be notified later.