Government to cushion rise in service tax of GST

The government will try and cushion the impact of GST on services in case of an increase in the levy after the implementation of the tax reform measure. The government currently imposes a service tax of 14.5% but the GST rate is expected to be higher with states like Kerala seeking a rate over 20% to ensure they do not loose revenue in the new tax regime.
Final call on the rates will be decided by the GST Council.