Pollution Under Control certificate issuance by an authorised private entity is taxable, not exempt as a pure governmental service.

Issuing Pollution Under Control Certificates for vehicles on behalf of the State Government was held not to be exempt from GST where the activity was performed by an authorised private entity for consideration and fees were charged beyond the cost of blank leaflets. The service was not rendered directly by the Central or State Government, Union Territory, or a local authority, and it was not shown to be a pure service connected with functions under Articles 243G or 243W. It therefore did not fall within SAC 9991 and was treated as a residual taxable service, attracting GST at the applicable rate of 18%.

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Issues: Whether the service of issuing Pollution Under Control Certificates for vehicles on behalf of the State Government is exempt from GST and whether it falls within SAC 9991 or is taxable under the residual entry.

Analysis: The activity was undertaken by the applicant for consideration, with prescribed fees charged over and above the cost of procurement of the blank leaflets. The service was not rendered directly by the Central Government, State Government, Union Territory or a local authority, and it was not shown to be a pure service in relation to functions entrusted under Article 243G or Article 243W of the Constitution of India. The activity therefore did not fit within SAC 9991 and fell within the residual category attracting GST at the applicable rate.

Conclusion: The service is not exempt from GST and is taxable at 18%.

Ratio Decidendi: A service performed by an authorised private entity for consideration, even if connected with a governmental function, is not exempt as a pure governmental service merely because it is done on behalf of the State.

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