Auction of special vehicle numbers a big money spinner, to attract GST
The state tax department is gearing up to impose the Goods and Services Tax (GST) on revenue generated by the transport department through the online auction of fancy (VIP) vehicle registration numbers.
The department is also planning to levy GST on revenue earned by the transport department from the licence fee charged by it from driving schools in the state.
Officials argue that offering premium registration numbers constitutes a value-added service under GST regulations, making it taxable at the rate of 18% or more.
“We recently sought information from the transport department on the revenue they earn through the online booking and subsequent auction of fancy registration numbers, and it was found that between 2018-19 and December 2023, over Rs.285 crore additional revenue was earned by them from this practice only,” a senior state tax official said.
This period also includes two years of COVID years when the sale of vehicles was nominal.
