Fancy vehicle number plates may soon come with 28% GST as tax officials push for highest rate
In an interesting case regarding whether GST should be charged, field formations have sought clarity from the Finance Ministry on whether fancy number plates or registration numbers of choice issued for vehicles by state transport authorities should be treated as a luxury and therefore subject to GST.
According to sources, "Field formations have written to the Central Board of Indirect Taxes and Customs (CBIC) seeking clarity on GST applicability for such fancy number plates."
Field formations are the offices of central government authorities based in each state and zone, responsible for tax collection, implementing tax laws, and interacting with taxpayers—in other words, the foot soldiers of the tax administration at the centre.
Sources say that these “field formations are of a view that fancy number plates are luxury and should be under the GST net.”
