Abstract

The service sector has emerged as a critical driver of economic growth in India contributing significantly to gross domestic product employment and foreign exchange earnings. With the rapid expansion of information technology finance telecommunications tourism and other service-oriented industries the need for an effective taxation mechanism to capture revenue from these activities has become imperative. The introduction of Service Tax and later its integration into the Goods and Services Tax (GST) regime marked a substantial evolution in India’s indirect taxation framework. This research paper examines the development implementation and impact of service taxation in India analyzing its economic significance regulatory framework and compliance challenges. The study also evaluates the implications of service taxation on businesses consumers and overall fiscal policy with a focus on efficiency equity and revenue generation. By reviewing historical trends statutory provisions and empirica