The Centre on Monday waived off Built-in Items and Companies Tax (IGST, which is levied on inter-state motion of products and imports) until June 30, on import of Covid associated reduction materials. The waiver may also be relevant on these supplies which have been donated or acquired freed from value from different international locations for donation function.
A Finance Ministry assertion mentioned that the Centre had acquired a number of representations from charitable organisations, company entities, and different our bodies from exterior India searching for exemption from IGST on the import of Covid-19 reduction materials, donated or acquired freed from value from exterior India at no cost distribution.
“Accordingly, the Central Authorities has granted exemption from IGST on import of such items acquired freed from value at no cost distribution for Covid reduction,” the notification mentioned, including that the exemption could 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 bunch of Covid-related reduction supplies, together with Remdesivir injection and its APIs, inflammatory diagnostic (markers) kits, medical grade oxygen, oxygen remedy associated tools akin to oxygen concentrators, cryogenic transport tanks in addition to Covid vaccines.
The IGST exemption given on Monday could be topic to nodal authorities, appointed by the state governments, authorising any entity, reduction company or statutory physique, at no cost distribution of such reduction materials.
The mentioned items could be imported freed from value 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, should produce a certificates from the mentioned nodal authorities, saying that items are meant at no cost distribution for Covid reduction, the order mentioned.
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, a press release containing particulars of products imported and distributed freed from value.
This assertion shall be licensed by the mentioned nodal authority of the state authorities.
“This exemption shall thus allow import of the Covid reduction provide imported freed from value at no cost distribution with out cost of IGST (as much as the 30th June, 2021). As customs responsibility is already exempt, these imports won’t entice any customs responsibility or IGST,” the ministry added.
Final 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.
Beneath Items and Companies 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.