The Goa bench of the AAR passed the ruling on an application filed by Venkatesh Automobiles on whether the service provided for issuing Pollution Under Control certificate on behalf of the state government is exempted from GST.
New Delhi: Vehicle owners will have to pay a goods and services tax (GST) of 18% to get pollution certificate for their vehicles, the Authority for Advance Ruling (AAR) has said.
The Goa bench of the AAR passed the ruling 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 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% GST,” the AAR said.
Every vehicle plying on road needs a PUC certificate, which indicates that the emissions are in alignment with pollution norms and are not harmful to the environment.
The AAR said the government has authorised the applicant to issue PUC certificate on payments. “It is the service provided by the applicant to customers on payment of service charges. Since, services related to pollution testing are provided on payment of service charge, GST is payable at applicable rate.”