Coronavirus disease (COVID-19) is having an unprecedented impact on the world's economy. It has affected the global economy and service sector. The purpose of the current study is to assess the effect of COVID-19 on service sector. The study focuses on the sectors that are badly hit by the outbreak. International lockdowns had a direct and indirect effect on the service businesses in India through trade, tourism, etc. This indicated the magnitude of reliance of our economy in this sector. However, as lockdowns gradually were lifted the economy recovered sooner than expected. This study concludes that services sector of India are badly hit by Covid-19 pandemic.