Services, including telephony, dining out and banking, will get dearer if the recommendations made by the GST panel are accepted, as the tax rate will increase to 17-18% from the current 14.5%, experts said.

A panel headed by chief economic adviser Arvind Subramanian has suggested a ‘standard rate’ of 17-18% on most goods and services.

“Services will see rise in prices as the tax rate will increase from 14% to 17-18% once GST is implemented,” said Saloni Roy, senior director, Deloitte (India).

The government plans to roll out Goods and Services Tax (GST) from April 1. A Constitution Amendment Bill on GST is currently stuck in the Rajya Sabha.

In the last budget, finance minister Arun Jaitley increased the service tax to 14% from 12.36%. Following the 0.5% Swachh Bharat cess, the service tax currently stands at 14.5%.

There is no clarity whether the Swachh Bharat cess would be subsumed in the GST or it would be levied over and above the standard rate.

BMR & Associates Partner Malini Mallikarjun said that some sectors such as real estate, may not get impacted as they are not included in GST.

In its report, the CEA-headed panel had suggested that alcohol, real estate, electricity and petroleum should come under the purview of GST at an “early stage” in future.