In a bid to end confusion over retrospective applicability of new Krishi Kalyan Cess, the government has stated that the 0.5 per cent tax will not apply on services whose invoice had been issued on or before May 31. Finance Minister Arun Jaitley had in his Budget for 2016-17 fiscal introduced the 0.5 per cent Krishi Kalyan Cess on all taxable services. Proceeds of the cess are to be used for improvement of agriculture sector and farmer welfare.

Source - http://economictimes.indiatimes.com