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Vehicle Owners in India to Pay 18 Percent Under GST on Pollution Certificate

The Authority for Advance Ruling (AAR) said that the government has authorised the applicant to issue Pollution Under Control (PUC) certificate on payments.

PTI

Updated:October 24, 2018, 4:42 PM IST
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Vehicle Owners in India to Pay 18 Percent Under GST on Pollution Certificate
(Image for representational purpose/Reuters)
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Vehicle owners will have to pay a GST of 18 percent to get a 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 the Goods and Services Tax (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 percent GST," the AAR said. Every vehicle plying on roads 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 that the government 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," the ruling said.
| Edited by: Abhinav Jakhar
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