Guidelines for Group C, D & E of the Service Tax Regulations 2018

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The Guidelines for Group C, D & E of the Service Tax Regulations 2018 provide guidance on the application of service tax to:

  • nightclubs, dance halls, cabarets, karaoke centres, health and wellness centres, massage parlours, public houses and beer houses (Group C),
  • private clubs (Group D), and
  • golf clubs & driving ranges (Group E).


The guidelines aim to facilitate understanding on the scope of taxability, registration requirements, applicable tax rates and other operational aspects concerning these services under the Service Tax system.

Key Points

The guidelines specify the taxable services and persons under Groups C, D and E.

It outlines concepts of mixed supplies, taxable values and tax due.

Relevant examples illustrate the treatment of corkage charges, spa services etc.

Transitional rules for the revised tax rates are explained.


  1. Q: My bar provides corkage service where customers can bring their own liquor to be consumed on my premises. Is the corkage fee subject to service tax? A: Yes, the corkage fee charged is a taxable service under Group C. Service tax should be charged on the corkage fees collected.
  2. Q: I operate a private club providing various recreational facilities like badminton, yoga, Zumba classes etc. Are these services taxable? A: Yes, all services including access to recreational facilities provided by a private club are taxable services under Group D. Service tax applies on the membership fees/charges.
  3. Q: My driving range charges hourly fees for the usage of driving bays. Are these fees subject to service tax? A: Yes, driving range services including the bay usage fees come under taxable services for golf clubs & driving ranges under Group E. Service tax should be charged on the fees.
  4. Q: I operate a traditional post-natal care centre providing confinement services to women after childbirth. Does service tax apply on the accommodation and treatment packages provided? A: Yes, post-natal care services fall under the scope of taxable wellness services under Group C. Hence, service tax should be charged unless exempted.
  5. Q: If a customer pays a tip directly to an employee of a private club, is service tax applicable on that tip amount? A: No, tips paid directly to employees as a gratuity are not subject to service tax. However, service tax applies if the tip is included in the customer’s bill.


In essence, the guidelines establish service tax requirements for nightlife entertainment outlets, member clubs and golf facilities.

A comprehensive coverage of rules, rates, obligations and operational issues is provided to ensure proper adoption across these sectors.


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