Imports of COVID-19 reduction materials, together with vaccines, medical oxygen and Remdesivir vials, will get a conditional ‘ad-hoc’ Goods and Services Tax (GST) exemption until June 30, the Finance Ministry stated on Monday.
The authorities had already exempted the import of this stuff from customs obligation and well being cess, however built-in GST (IGST) was being levied on such imports, which shall be withdrawn for 2 months for ‘relief materials being donated from abroad’.
The exemption gained’t be accessible for home firms or charities importing this stuff if they’re buying them, even when without spending a dime distribution within the nation, senior officers clarified. The related notification specifies that the comfort is for COVID-19 materials ‘received free of cost for free distribution anywhere in India for COVID relief’.
State chief secretaries had been informed to nominate nodal officers in order that ‘entities desirous of importing COVID relief material for free distribution may approach them for certification’. So international donors would wish to register with particular person States the place they want to route reduction materials.
“This is in response to representations from charitable organisations, corporates and entities outside India seeking exemption from paying IGST on the import of COVID-19 relief material,” the Ministry stated in a press release.
Goods already imported however pending clearance from Customs as of Monday, can even be lined. Last week, the federal government allowed the import of oxygen concentrators for private use with out paying customs duties, although a GST of 28% was payable for such imports, which was subsequently decreased to 12%.