Abstract

The imposition of a tax on services in India marks a significant shift in the country’s fiscal policy reflecting broader global trends toward comprehensive tax frameworks. Introduced under the broader Goods and Services Tax (GST) regime this tax represents a pivotal change from the previously fragmented service tax structure. The integration of service taxation aims to streamline tax administration reduce compliance costs and enhance revenue generation. This paper explores the historical evolution of service taxation in India evaluates the impact of the GST implementation on various sectors and analyzes the economic and administrative implications. Through a detailed examination of policy shifts stakeholder responses and comparative international practices the study provides a nuanced understanding of how the tax on services is reshaping India’s economic landscape.