Vijayawada Municipal Corporation’s (VMC) smart parking initiative may aid commuters to secure parking spaces in a hassle-free manner but lacks transparency. Several commuters have been questioning contractors as to why the smart parking initiative does not mention GST registration number on the ticket, and the caretakers have only one bizarre reply: “We are exempted”. This is untrue as even VMC officials explain that contractors do pay GST under a compensation scheme. Speaking to TOI, VMC’s estate officer Krishna Murthy said, “our accounting section explained that we do have certain exemptions from GST but the contractors themselves preferred to pay the amount as they stand benefitted from input tax credit.”
GST officials clarified that 18% GST was applicable on parking lot services and that the contractors are advised to pay it. While VMC’s contractors need not mention the CGST + SGST break up on ticket, they are violating norms by not putting forth their GST number. Under the compensation scheme, a different rate is given to the contractor where they can pay it off in bulk. Hence, the GST won’t be charged in ticket to ticket basis. Smart parking lots are working across 20 locations in the city with One Town market area and Besant Road being the busiest of them all. A user can book their parking space online via ‘Parkinslot’ mobile app. GST violations aren’t limited only to VMC’s smart parking stands but are rampant across several other private parking spaces particularly in movie theatres and malls. A slip is handed out to the commuter which neither has the GSTIN nor the break up.