The Union authorities on Monday exempted charitable organisations, corporates, and different abroad entities from paying built-in Items and Providers Tax (IGST) on aid supplies, together with Covid-19 vaccines, medical grade oxygen, oxygen concentrators, cryogenic transport tanks, and Remdesivir injections and its uncooked materials.
The federal government has already eliminated customs obligation on these things final month.
It arrange a devoted helpdesk for expeditious customs clearance of Covid-related aid supplies by way of cargo or courier by a pre-intimation system, a finance ministry spokesperson mentioned.
“The web facility might be accessed on the CBIC (Central Board of Oblique Taxes and Customs) web site,” he mentioned.
The “advert hoc” IGST exemption might be accessible as much as June 30, 2021, for importing Covid-related aid supplies which were donated without spending a dime distribution, the official mentioned. “It’s going to additionally cowl items already imported, however mendacity uncleared on date of its issuance of exemption, which is Monday,” he added. Most of exempted objects entice 12% IGST. On Could 1, the federal government lowered IGST on import of oxygen concentrators for private use from 28% to 12% as much as June 30, 2021.
IGST is levied on interstate switch of products and providers and it’s shared between the Centre and the state. All imports are handled as interstate provides and accordingly IGST is levied on them along with the relevant customized duties.
On April 24, the federal government waived off primary customs obligation and well being cess on oxygen and oxygen-related tools after a high-level assembly chaired by Prime Minister Narendra Modi. The choice was along with the exemption of primary customs obligation on import of Covid vaccines for a interval of three months, and anti-viral drug Remdesivir together with its uncooked supplies, for a interval of six months.
Giving the rationale behind the IGST exemption, a finance ministry assertion mentioned: “The Central Authorities had obtained a lot of representations from charitable organisations, company entities, and different associations/entities exterior India searching for exemption from IGST on the import of Covid-19 aid materials, donated/obtained freed from price from exterior India without spending a dime distribution.”
Consultants mentioned the IGST exemption comes with cumbersome situations, and for a restricted interval of lower than two months.