GST Council to decide on IGST levy on oxygen concentrators imported for personal use

 







The GST Council in its upcoming meeting, scheduled to be held on May 28, is likely to take a call on the 12 per cent tax on the import of oxygen concentrators for personal use.

The Delhi high court last week said that imposition of a 12 per cent integrated GST (IGST) on oxygen concentrators for personal use or those received as gifts is “unconstitutional”.

The court’s observation came on a plea filed by an 85-year old Covid patient whose relative had sent oxygen concentrator from the US.

It also quashed a May 1 notification of the finance ministry which said that a 12 per cent IGST will be levied on oxygen concentrators imported for personal use or gift.

Sources said the final decision on this issue would be taken by the Council in its upcoming meeting on Friday.

Tax experts said the Council may decide to exempt IGST on such imports as the revenue implications would not be much. Abhishek Jain, tax partner, EY, said, the government had already provided exemption from IGST on free import of oxygen concentrators for Covid relief by any state government or any agency authorised by the state government.

“The Delhi high court has extended the benefit of this IGST exemption to personal import as gifts for individual use as well. Given the enormity of the situation and as a life saving measure and given that the revenue loss for the government may not be significant, the government may consider ccepting the judgment and extending the benefit,” Jain added.

AMRG & Associates senior partner Rajat Mohan said collecting tariffs on medical equipment, medicines, and vaccines, scarcity of which is leading to the death of millions, is against the nation's fundamental principles.

“Lowering prices for Covid related material is needed, and neutralising tax on all such imports is one such effective method that would have an immediate trickle-down effect on the entire supply chain,” Mohan added.

The council in its May 28 meeting also likely to discuss tax rate cuts on Covid essentials, besides compensation shortfall of states.



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