The Authority for Advance Ruling (AAR) said that tdo get a pollution certificate, the vehicle owners will have to pay 18 per cent GST for their vehicle pollution check.
On an application filed by Venkatesh Automobiles in which it was asked about the exemption on issuing ‘Pollution Under Control’ (PUC) from Goods and Services Tax, a rule was passed by the Goa bench of the AAR.
“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.
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Every vehicle which is running on the road must have a PUC certificate, which indicates that the pollution emitted is not dangerous to the environment.
The applicant has been authorised by the government to provide PUC certificate on payments, said AAR. “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 ruling said.