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Scooters and bikes pollution on road in Pune, India. (Sandesh Bhandare/The India Today Group/Getty Images)
Authority for Advance Ruling (AAR) has ruled that from now on, vehicle owners will have to cash out 18 per cent GST to get their pollution certificates made.
This ruling was passed by the Goa bench of the AAR after Venkatesh Automobiles filed an application 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).
Every vehicle plying on the road must have a PUC certificate to certify that their vehicle comply with the emissions limit under the pollution norms such that it is not harmful to the environment.
The AAR said, "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 at 18 per cent GST," as reported by PTI.
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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