What is Swachh Bharat cess & How it Affects You?

Everyone is India is well aware of the Swachh Bharat Abhiyan, which is launched by the current Prime Minister of India, Mr. Narendra Modi. This initiative looks forward to make India cleaner and more hygienic.

What is Swachh Bharat cess?

Recently, the Government of India has confirmed that it will be imposing a new cess on services @ 0.5% on account of the Swachh Bharat initiative. From November 15, 2015 onward, payment of this cess is mandatory for every person who is availing some service. The primary motive behind this cess is to create awareness for a cleaner Indian and to associate every person with Swachh Bharat Abhiyan.

For an instance, if a person is availing services worth INR 100 will only attract INR 0.50 as Swachh Bharat Cess. Though the sum is minor and will not affect the people in terms of its value, the initiative is a good way to remind people of their obligation to keep India clean.

How will it affect people?

Swachh Bharat Cess will have two impacts on people. First of all, people will now pay towards a campaign which aims at maintaining a good hygienic factor in India and secondly. It will help them to be a part of an initiative which has received worldwide recognition.

Will Swachh Bharat Cess affect my direct income?

No, Swachh Bharat Cess is only laid on the services. It is an indirect form of taxes and hence, direct income has been exempted. There is no requirement for a tax assesse to make adjustments in his tax liability for Swachh Bharat Cess. However, when a tax payers avails in any services he will be liable to pay Swachh Bharat Cess @ 0.5%.

Earlier in 2014, the Swachh Bharat Abhiyan has already marked its importance through a widespread awareness amongst the people of India. The impact of this initiative is that the people of India are now more concerned about keeping their premise clean and disposing the trash in an ethical way. This resulted in a downfall of diseases which occurred out of wrongful garbage disposal. Additionally, it is for the first that time that an initiative has been able to draw the attention of so many people in India. Right from Bollywood stars such as Salman Khan to the Prime Minister of India, Mr. Narendra Modi, all have contributed to this campaign and created an awareness for a cleaner India.

The launch of Swachh Bharat Cess has taken this initiative to another where people who were previously not able to contribute to this campaign can make their contribution financially. After all, there are specialized cleaning groups under this campaign who needs to be paid and the 120 crore population of India will have no problem in adjusting to a cess which charges only 0.50 paisa for services worth INR 100.

The Swachh Bharat Cess will be applicable from November 15 2015, and places like restaurants, hotels and service oriented places will be required to charge the same to their clients.

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1 Comment

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  1. Hi,

    Appreciate the inputs shared. Now, in clarity in its applicability.

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