17th MeetingService Rates

17th GST Council Meeting — Service Tax Rate Fitment

Held on June 18, 2017 in New Delhi. The council finalized GST rates for all 1,211 services across the 5-tier tax structure, including exemptions for education, healthcare, and public transport.

16th Meeting18th Meeting

17th

Meeting Number

18 Jun 2017

Date

New Delhi

Location

Arun Jaitley

Chair

Rate Fitment

Key Focus

1,211

Services Covered

1,211

Goods Covered

Completed

Status

Key Decisions & Outcomes

Service Tax Rate Fitment

GST rates finalized for all 1,211 services categorized under 5%, 12%, 18%, and 28% slabs. Financial services, telecom, and IT services placed in 18% slab.

Education Services Exemption

Services by educational institutions (pre-school to higher secondary) fully exempt. Mid-day meal scheme, IIM diploma courses, and government training programs also exempted.

Healthcare Exemptions Confirmed

Healthcare services by clinical establishments, ambulance services, and services by charitable trusts providing free treatment kept fully exempt from GST.

Transport & Logistics Rates

Goods transport agencies at 5% (no ITC) or 12% (with ITC), railways passenger services exempt for sleeper/general class, air travel at 5% (economy) and 12% (business).

IT & Telecom at 18%

Information technology software services, cloud computing, telecom services, and SaaS products all placed at standard 18% GST rate with full input tax credit.

Construction & Real Estate

Works contract for government projects at 12%, other construction at 18%. Sale of under-construction property at 12% (effective 8% after land abatement).

Service Rate Categories Finalized

Tax SlabKey ServicesApproximate Count
Exempt (0%)Education, healthcare, public transport, religious pilgrimages~80 services
5% GSTTransport (GTA), small restaurants, tour operators, newspapers printing~25 services
12% GSTBusiness class air travel, works contract (govt), construction of affordable housing~60 services
18% GSTIT services, telecom, financial services, restaurant (AC), hotel (₹2,500-₹7,500)~550 services
28% GST5-star hotel accommodation, race club betting, cinema (non-exempt)~25 services
28% + CessCasino, online gaming, horse racing (later revised)~10 services

Frequently Asked Questions

What was decided at the 17th GST Council Meeting?
The 17th meeting on June 18, 2017 finalized GST rates for all 1,211 services. Key decisions included exemptions for education and healthcare, 18% rate for IT/telecom/financial services, and tiered rates for transport and hospitality sectors.
Are education services exempt from GST?
Yes, as confirmed at the 17th meeting, services provided by educational institutions from pre-school to higher secondary level are fully exempt from GST. This includes mid-day meal schemes and certain government-approved training programs.
What GST rate applies to IT and software services?
IT services, software development, cloud computing, SaaS products, and telecom services are all taxed at the standard 18% GST rate with full input tax credit availability, as finalized at this meeting.
How is GST applied to transport services?
Goods transport agencies can opt for 5% GST (without ITC) or 12% (with ITC). Railway passenger services for sleeper and general class are exempt. Economy air travel is 5% and business class is 12%.

Navigate All GST Council Decisions

Understand how service GST rates evolved from the 17th meeting onward — track every revision and exemption.

View All Meetings