Service tax was abolished with the rollout of GST on July 1, 2017, as the new tax subsumed service tax in addition to many other indirect taxes.
The provisions relating to Service Tax were brought into force with effect from July 1, 1994. Entry 97 of List-I of Schedule VII of the Constitution of India extends the constitutional rights to the Central Government to levy service tax. The Government of India, through the Department of Revenue administers the levy and collection of service tax in India. The service tax being an indirect tax, its administrative control is vested with the Central Board of Excise and Customs.
Service tax was introduced on 3 services namely Telephone Services, Non-Life Insurance Services and Stock Brokers Services which gradually increased to 119 services. From 1 July 2012, the concept of taxation on services was changed from a Positive List of services approach to a Negative List regime. This changed the taxation system of services from tax on the specified services to tax being levied on all services, other than those mentioned in the Negative List or which were exempted by a notification.