Services have been classified presently by the Service Tax administration with its Service Accounting Codes. Although, United Nations had published Central Product Code (UNCPC) in 1990, which was containing product classification of goods and services both, but it could not be adopted in Indian Service Tax Administration because, Service Tax had evolved with 3 services primarily under Chapter V of Finance Act, 1994. Gradually, number of services increased one by one through different Finance Acts and reached up to 119 in 2011, but still it was chargeable against countable number of services. In 20 11-12 a new concept of “Negative List of Services” was implemented and 120th category of service i.e. “Other taxable Services not specified elsewhere in the list of 119 descriptions of services” was introduced with a view to cover up the entire services under taxable net, other than those specified under 119 category which were classified through Service Accounting Code and those which were falling under exempted category. For specifying the new entry, another SAC i.e. 00441480 had prescribed. The SACs. from 00440008 to 00441485, classify the major heads of Service Tax, Other Receipts and Refund of tax service-wise.
Presently these service Accounting Codes have been utilized for Enrolment of Taxpayers under GST. However, it appears that a proper codification mechanism of services may be implemented under GST regime, as is being implemented in classification of Goods.
Efforts have been made by National Statistical Organization, Ministry of Statistics and Program Implementation in consultation with GSCI&S to develop a National Product Classification for Services (NPCS), which is based on United Nations Central Product Classification. For classification of Services, 5 digit Central Product Code of Services have been adopted from UNCPC prefixing two digit i.e. “99” as Chapter Heading and last one digit to specify services, which are country specific with a view to customize the classification scheme as per Indian Trade and Industry environment. For example, service related to Ayurvedic Medicines etc. Accordingly, more than 700 entries have been incorporated under NPCS, which may cover up the entire range of Services. The structural framework of classification is given below: |
