COVID-19: IGST slashed on import of relief material for free distribution
By TIOL News Service
NEW DELHI, MAY 03, 2021: THE Central government on Monday slashed Integrated Goods and Services Tax (IGST) on the import of COVID-19 relief material like oxygen concentrators and Remdesivir meant to be distributed free of cost by charitable organisations and associations.
In view of the COVID-19 pandemic, the government had already exempted basic customs duty and health cess on imports of Remdesivir injection, Beta Cyclodextrin, inflammatory diagnostic marker kits till October 31, and medical grade oxygen and equipment such as concentrators and cryogenic transport tanks, and COVID-19 vaccines till July 31.
They had also received requests from charitable organisations, corporate entities, and other associations outside India seeking exemption from IGST on the import of COVID-19 relief material (already exempted from customs duty), meant for donation or free distribution.
"Accordingly, the Central government has vide ad hoc exemption order number 4/2021 dated May 3, 2021 has granted exemption from IGST on import of such goods received free of cost for free distribution for Covid relief," said an official statement. As customs duty was already exempt on these products, the imports will not attract any customs duty and IGST.
The exemption shall apply till June 30 and would also cover goods already imported but lying uncleared on the date of its issuance of exemption.
The State government has to appoint a nodal to authorise any entity, relief agency or statutory body, for free distribution of such Covid-relief material. The goods can then be imported free of cost for free distribution anywhere in India.
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