Negative List of Services under Service Tax

Negative of services list service tax
Negative of services list service tax


Section 66D of Service tax Act provides negative list of services. No service tax is charged on these services.


1. Any Services provided by a Government or a Local Body excluding below mentioned services –

a) Services provided to any person other than government by the Department of Post by way of -

  • Speed Post
  • Express Parcel Post
  • Life Insurance
  • Agency Service

b) Services provided in relation to –

  • An Aircraft
  • Vessel (whether inside or outside the boundary of a port)
  • An Airport

c) Transport of goods or passengers (to the extent not covered under entry no. 15 & 16).

d) Any Service provided to a business entity (Amended by Budget 2015).


2. Services provided by Reserve Bank of India.


3. Services provided by a Foreign Diplomatic Mission in India.

Note – Services provided by a Foreign Diplomatic Mission in India has been covered under negative list but services provided provided to a Foreign Diplomatic Mission have been covered under Notification 27/2012. Click Here to see the relevant provisions.


4. Services relating to Agriculture or Agriculture produce by way of –

a) Agricultural operations directly related to any agricultural produce including –

  • Cultivation
  • Harvesting
  • Threshing
  • Plant protection or testing

b) Supply of Farm Labour.

c) Processes carried out at an agricultural farm including -

  • Tending
  • Pruning
  • Cutting
  • Harvesting
  • Drying
  • Cleaning
  • Trimming
  • Sun drying
  • Fumigating
  • Curing
  • Sorting
  • Grading
  • Cooling or
  • Bulk packaging and
  • Such like operations which do not alter essential characteristics of agricultural produce but make it only marketable for the primary market.

d) Renting or leasing of Agro machinery or vacant land with or without a structure incidental to its use.

e) Loading, unloading, packing, storage or warehousing of Agriculture produce.

f) Agricultural Extension services.

g) Services for sale or purchase of agricultural produce provided by -

  • any agricultural produce marketing committee or board or
  • a commission agent


5. Trading of Goods.


6. Any process amounting to manufacture or production of goods.


7. Selling of space or time slots for Advertisements other than advertisements in print media.


8. Services by way of access to a road or a bridge on payment of toll charges.


9. Betting, Gambling or Lottery.


10. Admission to Entertainment Events.

Note – Service tax to be levied on services by way of admission to entertainment event of concerts, non recognized sporting events, pageants, music concerts, award functions, if the amount charged for admission is more than Rs.500. [Union Budget 2015].


11. Transmission or Distribution of electricity by an Electricity Transmission or Distribution Utility.


12.  Services by way of –

a) Pre-school education and education up to higher secondary school or equivalent.

b) Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.

c) Education as a part of an Approved Vocational Education Course.


13. Services by way of Renting of residential dwelling for use as residence.


14. Services by way of –

a) Extending deposits, loans or advances in sofar as the consideration is represented by way of interest or discount.

b) Inter se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks and such dealers.


15. Service of transportation of passengers, with or without accompanied belongings, by–

a) A Stage Carriage

b) Railways in a class other than first class or an air conditioned coach

c) Metro, Monorail or Tramway

d) Inland Waterways

e) Public Transport, other than predominantly for tourism purpose in a vessel between places located in India.

f) Metered cabs and Auto rickshaws.


16 . Services by way of transportation of goods

a) By Road Except the services of –

  • Goods Transportation Agency; or
  • Courier Agency;

b) By an Aircraft or a Vessel from a place outside India up to the customs station of clearance in India.

c) By Inland Waterways


17. Funeral, burial, crematorium or mortuary services including Transportation of the deceased.


This list covers all the services under negative list. For definitions and explanations, users are requested to download the attached file.

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