Service Tax Negative List as Amended by Finance Act 2017

In terms of Section 66B of the Finance Act, 1994 [Service Tax Act as amended by the Finance Act 2017] Service Tax will be leviable on all services provided in the taxable territory by a person to another for a consideration other than the services specified in the Service Tax Negative List.

However Service Tax Negative List specified services which is out of the ambit of service tax applicability i.e. service tax exemption without any condition. The negative list of services is specified in the Act itself in the Section 66D of Finance Act 1994. In all, there are seventeen heads of services that have been specified in the negative list services. 

Read Also: Free & Updates Service Tax Bare Act and Rules

S. No

Service Category


(a) Service by Govt. or a Local Authority  All services excluding the following services to the extent they are not covered elsewhere:-

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers; or

(iv) [any services], other than services covered under clauses (i) to(iii) above, provided to business entities.

(b)  Services by the Reserve Bank of India (RBI)
(c)  Services by a Foreign Diplomatic Mission Located in India
(d)  Services relating to agriculture by way of –

(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;

(ii) supply of farm labour;

(iii) 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;

(iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

(v) loading, unloading, packing, storage or warehousing of agricultural produce;

(vi) agricultural extension services;

(vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.

(e) Trading of goods.
(f)  Services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption (deleted by Finance Act 2017 w.e.f. 31-03-2017)
(g)  Selling of space for advertisements in Print Media.
(h)  Service by way of access to a road or a bridge on payment of toll charges.
(i)  Betting, gambling or lottery.

Explanation.– For the purposes of this clause, the expression “betting, gambling or lottery” shall not include the activity specified in Explanation 2 to clause (44) of section 65B.

(j) Admission to entertainment events or access to amusement facilities.
(k) Transmission or distribution of electricity by an electricity transmission or distribution utility.
(l) Education Related Service Services by way of –(i) pre-school education and education up to higher secondary school or equivalent;(ii) education as a part of a curriculum for obtaining a qualification recognized by law;(iii) education as a part of an approved vocational education course.
(m) Services by way of renting of residential dwelling for use as residence;
(n) Loan & Advance  Services by way of –

(i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;

(ii) inter-se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks and such dealers;

(o) Transportation of Passengers Service of transportation of passengers, with or without accompanied belongings, by:-

(i)a stage carriage;

(ii) railways in a class other than –

(A) first class; or

(B) an air conditioned coach;

(iii)metro, monorail or tramway;

(iv) inland waterways;

(v) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and

(vi) metered cabs or auto rickshaws;

(p) Transportation of goods Services by way of transportation of goods –(i) by road except the services of –

(A) a goods transportation agency; or

(B) a courier agency;

(ii) by an aircraft or a vessel from a place outside India to the first customs station of landing in India; or

(iii) by inland waterways;

(q) Funeral, burial, crematorium or mortuary services including transportation of the deceased.

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