Govt waives IGST on import of COVID-relief material received as donation for free distribution

Govt waives IGST on import of COVID-relief material received as donation for free distribution

New Delhi, May 3

The authorities on Monday waived Integrated GST (IGST) until June 30 on the import of COVID-related reduction material donated or received free of price from outdoors India for free distribution.

The Finance Ministry in a press release stated the federal government had received a quantity of representations from charitable organisations, company entities, and different associations/entities outdoors India in search of exemption from IGST on the import of COVID-19 reduction material, donated/received free of price from outdoors India for free 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,” it stated, including 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 authorities has already exempted from customs responsibility import of a number of COVID-related reduction supplies, together with Remdesivir injection and its APIs, Inflammatory diagnostic (markers) kits, medical grade oxygen, oxygen remedy associated tools such as oxygen concentrators, cryogenic transport tanks, and so forth, and Covid vaccines.

The IGST exemption given on Monday can be topic to nodal authorities, appointed by the state governments, authorising any entity, reduction company or statutory physique, for free distribution of such reduction material.

The stated items may be imported free of price by a state authorities or, any entity/ reduction company/ statutory physique, licensed on this regard for free distribution wherever in India.

The importer shall earlier than clearance of items from Customs produce a certificates from the stated nodal authorities that items are meant for free distribution for Covid reduction.

After imports, the importer shall produce, to 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, a press release containing particulars of items imported and distributed free of 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.

India’s single day COVID infections had crossed a report 4 lakh mark final week. On Monday, 3.68 lakh new infections and three,417 deaths have been reported.

Last week, the federal government slashed IGST charge on import of oxygen concentrators for private use to 12 per cent, from 28 per cent, for two months until June 30.

Under Goods and Services Tax (GST), the tax levied on consumption of items or rendering of service is cut up 50:50 between the Centre and the state. Such tax is thought as Central-GST or CGST and State-GST or SGST.

On inter-state motion of items as effectively as imports, an Integrated-GST or IGST is levied, which accrues to the Centre. The quantity paid as IGST may be utilised by companies for claiming credit score whereas making CGST or SGST funds on the time of precise sale.

AMRG & Associates Senior Partner Rajat Mohan stated, “Government has rightly come up with full IGST relief on import of Covid related relief material including oxygen concentrators, generators, cylinders and Covid medicines by state government and its authorised agencies.” —PTI



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