PUC or Pollution Certificate Issuance To Attract 18% GST

The Authority for Advance Ruling has clarified that vehicle owner in order to get pollution check for their vehicles or PUC i.e. pollution certificate will need to pay GST @ 18%.

The clarification has come on the back of the application put forth by Venkatesh Automobiles to clarify as to whether service rendered for issuing PUC on behalf of the state authorities comes within the ambit of Goods and Services Tax (GST). Further to the application, Goa bench of the AAR passed the ruling.

"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.

Each of the vehicle plying on the road needs to be in commensurate with the emission law and for it as per the specified timeline, vehicle owners need to secure pollution certificate or PUC.

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.

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