Finance Ministry exempts IGST on import of COVID-19 relief material amid crisis

In view of the COVID-19 crisis, the Central Government on Monday has issued notifications exempting Basic Customs Duty and Health cess on imports of a number of COVID-related relief materials, for a limited period. On Saturday, the Finance Ministry also reduced the Integrated Goods and Services Tax (IGST) rate on the import of oxygen concentrators for personal use from 28 per cent to 12 per cent amid the acute shortage of medical oxygen in several parts of the country.

Notification & Purpose 

This would include--Remdesivir injection/ API and Beta Cyclodextrin (SBEBCD), Inflammatory diagnostic (markers) kits, till 31st October 2021. Medical grade Oxygen, oxygen therapy-related equipment such as oxygen concentrators, cryogenic transport tanks, etc, and COVID-19 vaccines till 31st July 2021.

The government of India received a number of representations from charitable organizations, corporate entities, and other entities outside India seeking exemption from IGST on the import of COVID relief material (already exempted from customs duty), donated/received free of cost from outside India for free distribution. 

As per the government, this exemption shall be subject to the following conditions:

• A nodal authority should be appointed by the state government in the State for the purpose of this exemption. As per section 2 (103) of the Central Goods and Services Tax Act, 2017, the state includes a Union territory with Legislature.
• The Nodal authority so appointed shall authorise any entity, relief agency or statutory body, for free distribution of such COVID-relief material.
• The said goods can be imported free of cost by a State Government or, any entity/ relief agency/ statutory body, authorized in this regard for free distribution anywhere in India.
• The importer shall before clearance of goods from Customs produce a certificate from the said nodal authorities that goods are meant for free distribution for COVID relief.
• After imports, the importer shall produce, to the Deputy or Assistant Commissioner of Customs at the port within a period of six months from the date of importation or within such extended period not exceeding nine months, a simple statement containing details of goods imported and distributed free of cost. This statement shall be certified by the said nodal authority of the State Government.

These exemptions shall enable import of the COVID relief supply imported free of cost for free distribution without payment of IGST up to June 30, 2021.

Dushyant Chautala Urges FM to Exempt GST on O2 Concentrators

On Monday, Haryana Deputy Chief Minister Dushyant Chautala has written a letter to Union Finance Minister Nirmala Sitharaman, requesting to exempt oxygen concentrators from GST. He also conveyed his gratitude to the Government of India for allowing the import of oxygen concentrators for personal use through e-commerce portals, post or courier till July followed by a reduction of the rate of Integrated GST on such imports from 28% to 12%.

"As we know that most oxygen concentrators are not produced domestically and large quantities of such concentrators are being imported presently in view of the current pandemic crisis. I request you to consider exempting GST on oxygen concentrators, for the time being, thereby making oxygen concentrators more affordable for the public," Chautala added. 

(Image Credits: PTI/REPRESENTATIVEIMAGE)