Vehicle owners will have to pay a GST of 18 percent to get their vehicles checked for pollution, 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 need a PUC certificate, which indicates that the emissions are in alignment with pollution norms and are not harmful to the environment.
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