​Government has introduced a new Tax called ‘Swachh Bharat Cess (SBC)’ on 04-Nov-2015 with effective from 15-Nov-2015. SBC is imposed on all taxable Services at the rate of 0.5% and SBC is not a Cess on Service Tax but it is a tax on taxable services in addition to Service tax. It would be calculated in the same way as Service Tax is being calculated.

Overview​

a. SBC is imposed on all taxable services at the rate of 0.5% with effect from 15-11-2015.

b. SBC is not a Cess on Service Tax but it is a tax on taxable services in addition to Service tax. It would be calculated in the same way as Service Tax is being calculated.

c. Exempted Services and Services those covered under the negative list would fall outside the ambit of SBC.

d. SBC shall be charged as a different tax on the invoice, accounted for separately in the books of account and paid to government independent of Service Tax.

e. The provisions of Service Tax shall apply to SBC as well. Thus the scenarios of Reverse charge and abatement are susceptible to SBC along with Service Tax. The value of service on which SBC is levied would be the same as the base on which Service Tax is computed.

f. SBC paid on Input Services cannot be availed as Credit. Similarly, Credit of any duty or tax cannot be utilized for payment of SBC.​

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