The Centre on Monday waived off Integrated Goods and Services Tax (IGST, which is levied on inter-state motion of products and imports) until June 30, on import of Covid associated aid materials. The waiver can even be relevant on these supplies which have been donated or acquired freed from price from different international locations for donation objective.
A Finance Ministry assertion stated that the Centre had acquired a number of representations from charitable organisations, company entities, and different our bodies from outdoors India looking for exemption from IGST on the import of Covid-19 aid materials, donated or acquired freed from price from outdoors India at no cost distribution.
“Accordingly, the Central Government has granted exemption from IGST on import of such goods received free of cost for free distribution for Covid relief,” the notification stated, including that the exemption can be relevant until June 30.
This exemption would additionally cowl items already imported however ready to be cleared on the Customs ports.
The Government has already exempted from customs responsibility, import of a bunch of Covid-related aid supplies, together with Remdesivir injection and its APIs, inflammatory diagnostic (markers) kits, medical grade oxygen, oxygen remedy associated gear comparable to oxygen concentrators, cryogenic transport tanks in addition to Covid vaccines.
The IGST exemption given on Monday can be topic to nodal authorities, appointed by the state governments, authorising any entity, aid company or statutory physique, at no cost distribution of such aid materials.
The stated items will be imported freed from price by a state authorities or, any entity authorised on this regard at no cost distribution wherever in India.
The importer, earlier than clearance of products from Customs, must produce a certificates from the stated nodal authorities, saying that items are meant at no cost distribution for Covid aid, the order stated.
After imports, the importer must produce earlier than the Deputy or Assistant Commissioner of Customs on the port, inside a interval of six months from the date of importation or inside such prolonged interval not exceeding 9 months, an announcement containing particulars of products imported and distributed freed from price.
This assertion shall be licensed by the stated nodal authority of the state authorities.
“This exemption shall thus enable import of the Covid relief supply imported free of cost for free distribution without payment of IGST (up to the 30th June, 2021). As customs duty is already exempt, these imports will not attract any customs duty or IGST,” the ministry added.
Last week, the federal government slashed IGST price on import of oxygen concentrators for private use to 12 per cent, from 28 per cent, for 2 months until June 30.
Under Goods and Services Tax (GST), the tax levied on consumption of products or rendering of service is split equally between the Centre and the states. Such tax is named Central GST or CGST and State GST or SGST.
On inter-state motion of products in addition to imports, IGST is levied, which accrues to the Centre.