Change in Abatement Rates w.e.f 1.6.2016

AC Stage Carriage Bus is now taxable(removed from Negative List) and there is 60% Abatement (40% Taxable)

Transport of Passengers Old Rate New Rate
Motor Cab 40% 40%
Radio Taxi 40% 40%
Stage Carriage (AC Bus) Exempt 40%
Stage Carriage (Non AC Bus) Exempt Exempt

However,Non AC Stage Carriage (Non AC Bus) continue to be exempt (Notification 9/2016)


 Change in Abatement Rates w.e.f 1.4.2016

Name of Service  TAXABLE RATES
  Old Rate New Rate
Goods Transport Agency (Road)    
Normal Cases 30% 30%
For Supply of Old Household Items 30% 40%
Goods Transport by Raiways    
by Private Railways 30% 40%
by Government Railways 30% 30%
Chit Fund 0% 30%
Construction Services    
For Residential unit less than 2000 sq feet + Price Charged > 1 cr 25% 30%
Other Cases 30% 30%
Tour Operator Service    
Booking Accomodation 10% 10%
Package Tour Service 25% 30%
Other Cases 40% 30%

(Note:- These are taxable Rates,i.e.Rates after claiming abatement)

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Change in Conditions for Abatement w.e.f 1.4.2016

Now Cenvat of Input Services can be taken in case of following Services also

  • Transportation of Goods by Rail
  • Transportation of Passengers by Rail
  •  Transportation of Goods in a Vessel.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.