Centre has given IGST exemption on imported Covid associated aid materials until June 30
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 may also be relevant on these supplies which have been donated or acquired freed from value from different nations for donation function.
A Finance (*30*) 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 value from outdoors India without spending a dime 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 obligation, 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 tools resembling 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, without spending a dime distribution of such aid materials.
The stated items may be imported freed from value by a state authorities or, any entity authorised on this regard without spending a dime distribution wherever in India.
The importer, earlier than clearance of products from Customs, should produce a certificates from the stated nodal authorities, saying that items are meant without spending a dime distribution for Covid aid, the order stated.
After imports, the importer should 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 value.
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 called 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.
