The rate of service tax was increased to 12% by Finance Act, 2006 w.e.f 18.4.2006.
The revenue from the service tax to the Government of India had shown a steady rise since its inception in 1994.
The collections are shown in the following table:[citation needed] Service tax, which started out at a nominal 5%, now stands at 15%.
Krishi Kalyan Cess, which was announced during the 2016–17 Budget, has become applicable from 1 June.
While Swachh Bharat Cess was levied to conduct a cleanliness drive in India, the new cess has been levied to finance and promote initiatives to improve agricultural growth.
In the new system all services, except those specified in the negative list, are subject to taxation.
[9] Rule 4A prescribes that taxable services shall be provided and input credit shall be distributed only on the basis of a bill, invoice or challan.
and consignment note issued by goods transport agencies.