Eighteen percent GST for pollution certificate

PANJIM: To obtain pollution certificate for vehicles, owners will now have to pay GST of 18 percent as per an order of the Authority for Advance Ruling (AAR), Goa bench on Tuesday.

AAR has held the activity of issuance of Pollution Under Control (PUC) Certificate for vehicles is not covered under Services Accounting Code (SAC) 9991. Since the process is covered under Residual Entry, the bench ordered that 18 percent GST is applicable.

The order follows an application filed by the Authorised Service Centre appointed by Goa Transport Department to carry out Pollution Testing of Commercial and Non-Commercial Vehicles.

The appellant, the order copy stated, carries out the pollution testing and issues PUC certificate, which is mandatory as per section 190(2) of the Motor Vehicle Act, on payment of prescribed fees. The certificates are issued only if the emission of the vehicle is in alignment with standard pollution norms and not harmful to the environment.

“The government has authorised the applicant to issue Pollution Control 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 the applicable rate,” the authority said.

As per details explained before the bench, the applicant purchases blank leaflets books from Directorate of Transport on payment of prescribed rate per leaf and issues these to customers after Pollution Control Test at the higher rate.