This document discusses the introduction of a negative list for service tax in India through amendments made in the Finance Act of 2012. It provides background on the existing complex tax structure for goods and services in India. The key changes introduced include switching from a selective approach to taxing services to a negative list approach, where all services are taxable unless specifically exempted. A negative list of 17 services now exempted from tax is provided. The document discusses the rationale for introducing a negative list to simplify compliance and widen the tax base. It is estimated to potentially increase tax revenues substantially.