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Confusion on GST Over Pollution Certificate in India

GST Over Pollution Certificate

Due to the ongoing pollution certifications being provided by the service centres. In lieu of this service, GST tax is being recovered from the public. But the question is arising that who will pay the GST for these kinds of services. The answer of this is neither with the Pollution Testing Center and nor with the Transport Department, as the receipt is being issued by the Department of Transport and the tax is being recovered from the public on the face value of receipt. To avoid the confusion, GST is not being imposed at any of the Pollution Testing Center. Pollution test centres are saying that when we are not receiving the GST from the public, why should we deposit GST?

Reality check at some pollution investigation centres has been conducted by news media where it is found that receipt is being issued by the transport department to the public. The fee of issuance of the certificate is only mentioned in the certificate. Operators of some pollution test centres said that we are submitting GST for our benefits. Right now, we are not receiving the tax from the public. Pollution test centres come under service category, 18 percent GST is being levied on it.

Earlier, there were 118 pollution centres in the district but after checking the pollution level in the vehicles there were some cases of negligence, due to this all of them were shut down. Right now, there are total 80 pollution centres operating in the district, whereas most of the pollution centres are interlinked with the petroleum pump.

GST whether imposed on pollution centres or not right now, there is no clarity from the Department of Transportation. So far, we are not taking GST from the public. Wherever you will file tax returns, at the same time chargeable tax will be levied. Right now, we have not received any instructions from the government regarding the collection from the public.

If the name of the petrol pump owner is registered with pollution test centres and the annual turnover is more than Rs 20 lakh, then he will come under the ambit of GST. When the assessment will be done, businesses those have not deposited the GST, they will have to pay the tax under the new indirect tax regime. Pollution test centres with an annual turnover of less than Rs 20 lakh will have no need to file the return under GST.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Poonam Hotwani (Ex-Employee)
Poonam Hotwani completed her schooling and graduation from Kota (Rajasthan). Pursued her MBA from Poornima Group of Colleges in Jaipur. Being a management student, she began her career as an academic content writer. She is dedicated, passionate and sincere about her work. Her keen interest areas are exploring websites, reading, writing and cooking. View more posts
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2 thoughts on "Confusion on GST Over Pollution Certificate in India"

  1. In MP gst registration is mandatory to operate pollution test centre but if our turnover is below 20 lacs than what can we do

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