What is Swachh Bharat cess tax?
Mia Phillips
Updated on May 01, 2026
The cess was first implemented in 2015. It took the form of a 0.5% surcharge on all services. According to information received in response to the RTI, Rs 20,632.91 crore was collected in Swachh Bharat Cess between 2015 and 2018.
What is the logo and percentage of tax for Swachh Bharat Abhiyan?
As of now, the current service Tax Rate including the Swachh Bharat Cess stands at 0.5% and 14.50% on all taxable services, which will fund Swachh Bharat Abhiyaan. The SBC is collected as per provision of Chapter VI (Section 119) of the Finance Act, 2015.
How Swachh Bharat cess is collected?
The cess, an additional tax levied by the government, is collected by the central government under the Consolidated Fund of India (CFI). There was a short transfer of Rs 4,891 crore collected as Swachh Bharat cess to the Rashtriya Swacchata Kosh since FY16, the year the cess was introduced.
How is Swachh Bharat cess used?
Using a cess: the Swachh Bharat cess came into being in 2015 as part of a 0.5% levy on services. If you take out a restaurant bill before the new Goods and Services Tax (GST) came into effect, you will be able to see it as a separate line item.
Is cess applicable on income tax?
Cess at the rate of 4% is applicable on the income tax amount. Surcharge at different rates on the income tax is applicable before the levy of cess if the total income exceeds Rs 50 lakh in a financial year.
Which cess is levied 0 5 percent on all services?
Krishi Kalyan Cess It is a service tax implemented on every service at the rate of 0.5 per cent of the on-paper price of such services. Krishi Kalyan Cess may be considered another version of Service Tax and will be charged as much as the same.
Do we have to pay for Swachh Bharat Abhiyan?
While the government had indicated earlier that it would only be levied on select services, it is no longer the case. All services availed after November 15 which attract Service Tax will also require Swachh Bharat cess to be paid at the rate of 0.5% on the taxable amount.
What is cess with example?
Cess meaning: Cess is a form of tax charged/levied over and above the base tax liability of a taxpayer. For example, after Kerala floods in the year 2018, the state government imposed a 1% calamity cess on GST and became the first state to do it.
When was SBC and KKC introduced?
Similarity and Difference between SBC AND KKC
| SBC | KKC |
|---|---|
| It means Swachh Bharat Cess | It means Krishi Kalyan Cess |
| It was introduced from 15 Nov 2015 | It was introduced from 1 June 2016 |
| No Cenvat Available of SBC | Input Cenvat Available of KKC However,same can be utilizedagainst Output KKC Only |
How is Swachh Bharat Cess calculated on service tax?
Rate: The Swachh Bharat Cess is not calculated on service tax per service, but on the taxable value of a service. The cess is applied at 0.5% on the value of services which are taxable. Taxable Services: As per government notification, Swachh Bharat Cess is applicable on taxable services except those which are fully exempt from service tax.
Is Swacch Bharat applicable on non taxable services?
Swacch Bharat is applicable on the service’s value, with effective service taxes at around 14.5% from 15.11.2015. Swacch Bharat is not applicable on non-taxable services as the exempted services. The cess invoice disclosure and payment has to be separate.
Is SBC a service tax or a cess?
Firstly, it must be clarified that while the SBC is referred to as a cess, it is actually a service tax. SBC is not applicable on the amount of service tax but on the value of taxable services.
What is the SBC tax?
SBC is tax in addition to Service Tax which shall be levied and collected in accordance with the provisions of Chapter VI of the Finance Act, 2015,called “Swachh Bharat Cess”, as service tax on all the taxable services at the rate of 0.5% of the value of taxable service.
