Budget 2024-25: Sindh Increases GST on Services

The Sindh government has increased the Goods and Services Tax (GST) rate on services from 13% to 15% for the new fiscal year 2024-25, expanding its scope to include several new sectors.

Previously, under the Sindh Sales Tax on Services Act, GST was collected on services provided by restaurants, hotels, wedding halls, management services, airport services, warehouses, and more at a rate of 13%.

During the presentation of the provincial budget on Friday, Sindh Chief Minister Syed Murad Ali Shah announced the rate increase to 15%.

The Sindh Finance Bill outlines that three new sectors—educational services, hospital and clinic services, and services provided by pet-related establishments—are now subject to GST.

Additionally, the existing list now includes farmhouses along with guest houses, and the category of professional services has been expanded to include medical practitioners and consultants, who will also be subject to the GST.