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<h1>Service Tax Rate Cut from 12% to 10% Announced in 2009, Reversed by Notification in 2012 Under Finance Act.</h1> The Central Government issued Notification No. 8/2009-ST on February 24, 2009, under the Finance Act, 1994, reducing the effective rate of service tax from 12% to 10%. This reduction applies to all taxable services specified in the Finance Act, as the government deemed it necessary in the public interest. This notification was later rescinded by Notification No. 2/2012-ST, effective from April 1, 2012.