Vehicle owners will have to pay 18 percent more under Goods and Services Tax (GST) to get that mandatory pollution certificate, said Authority for Advance Ruling (AAR).
Based on an application filed by Venkatesh Automobiles on whether the service provided for issuing ‘Pollution Under Control‘ (PUC) certificate on behalf of the state government is exempted from GST, the Goa bench of the Authority for Advance Ruling (AAR) has passed the ruling.
“The activity of issuance of Pollution Under Control certificate for vehicles issued by the applicant is not covered under SAC (Services Accounting Code) 9991 and is covered under residual entry and hence, should be taxed @ 18 per cent GST,” the AAR said.
Every vehicle running on roads mandatorily requires a PUC certificate, which indicates that the emissions are in adherence with pollution norms and are not harmful to the environment.
The AAR has announced that Centre said has authorised the applicant to issue PUC certificate on payments. “It is the service provided by the applicant to the customers on payment of service charges. Since, the services of testing of pollution are provided on payment of service charge, GST is payable at applicable rate,” said the ruling.