Prior to 01.04.2016, in addition to services specified under subclauses (i), (ii) & (iii) of section 65D(a) of Finance Act, 1994, services covered by the definition of ‘Support Services’ (as defined under Section 65B(49) of Finance Act, 1994) provided by Government or Local Authority to a ‘business entity’ are subject to service tax.

However, w.e.f. 01.04.2016, all services provided by Government or Local Authority to a business entity shall be subject to service tax. Further corresponding changes in Reverse Charge Mechanism provisions have also been made.

Present Position: As per section 66D(a) of Finance Act, 1994, all services, other than followings provided by Government or Local Authority, shall not be subject to service tax. In other words, following services (if not covered by any other entry of negative list or not specifically exempt by a notification) provided by Government or Local Authority shall be subject to service tax: