0.5% Swachh Bharat Cess leviable on all services from November 15

Today the central government has decided to impose 0.5 per cent Swachh Bharat Cess on all taxable services with effect from 15th November, 2015. Finance Minister Arun Jaitley had in budget 2015-16 proposed to levy Swachh Bharat Cess of up to 2 per cent on all or certain services but it ultimately settled to 0.5 per cent.

Swachh Bharat

The government has taken a step to involve each and every citizen in making contribution to Swachh Bharat Programme. The proceeds from this cess will be exclusively used for Swachh Bharat drive.

This Swachh Bharat Cess would be charged in addition to 14 per cent service tax rate. This means the effective rate of Service Tax would be 14.50 per cent.

Related notification as follows:



New Delhi, the 6th November, 2015


Notification No. 22/2015-Service Tax

G.S.R. —(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) read with sub-section (5) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all taxable services from payment of such amount of the Swachh Bharat Cess leviable under sub-section (2) of section 119 of the said Act, which is in excess of Swachh Bharat Cess calculated at the rate of 0.5 percent. of the value of taxable services:

Provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994.

This notification shall come into force from the 15th day of November, 2015.

 [F.No. 354/129/2015 – TRU]


(K. Kalimuthu)
Under Secretary to the Government of India


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