Would GST be applicable on the portion of statutory levy charged by Automated Testing Station (ATS) for grant of fitness certificate to vehicles ? Also RCM applicable thereto.

[Gautam Godhwani]

The ATS does not accept the full payment of the statutory levy as prescribed in the Motor Vehicle Rules. First the vehicle owner goes to the ATS, makes partial payment and gets an acknowledgement - then goes to the RTO which makes invoice on the full amount but the vehicle owner need pay only the remaining amount.

After this the vehicle owner takes the receipt back to the ATS or fitness center, which then provides the fitness certificate.

Lets say the statutory levy for heavy vehicle is Rs 1000 and the ATS takes part payment of Rs 400. Would GST be payable on this Rs 400 ?

Also, would the vehicle owner be liable to pay RCM on the entire Rs 1000 ?

AI Summary

GST Applies to Charges by Automated Testing Stations for Vehicle Fitness; Reverse Charge Mechanism Considered, Exemptions Possible. A discussion on whether GST applies to the statutory levy charged by Automated Testing Stations (ATS) for vehicle fitness certificates and the applicability of Reverse Charge Mechanism (RCM). The ATS collects partial payment, and the Regional Transport Office (RTO) invoices the full amount. One participant asserts that the service is taxable under GST and covered under RCM, as it is not exempt. Another participant questions if exemptions apply for services under Rs. 5000 or for safety-related certifications. The consensus is that the service is taxable, but exemptions may be considered based on specific entries.