AAR Goa branch announced that from now onwards all the vehicle owners will have to pay an additional 18 percent GST on all the pollution control certificates according to a petition filed by a automobiles traders.
According to the petition, it was asked that is the pollution under control certificates issued by the government are exempted from GST or not? On which the AAR stated that pollution control certificate doesn’t come under services accounting code ASC 9991.
This comes in the residual entry services for which it must be applied with the 18 centers GST. According to the central motor vehicle act 1989 rule 115 (7), the pollution certificate is the only issue when a vehicle produces a dangerous level of pollution in the environment.
Read Also: GST Impact on Automobile and Spare Parts Industry in India
The state transport department undertakes such registration and has settled multiple pollutions checking centres assigned by them. All these centres cumulatively take 35 to 100 rs per checking fees, however, this charge is set to go up by the additional 18 percent GST.
In case the vehicle does not have a pollution certificate than there is a penalty of 1000 rs for the first time. While on the second time, the penalty will be 2000rs.
Also, the government had directed that if the vehicle does not have pollution certificate then there will be no insurance issued to the particular vehicle which further doubles the penalty of the vehicle without insurance.
Recommended: 28% GST on E-rickshaw Tyres: A Serious Issue for Poor Man
