- IGST is levied on interstate transfer of goods and services and it is shared between the Centre and the state.
The government has already removed customs duty on these items last month.
It set up a dedicated helpdesk for expeditious customs clearance of Covid-related relief materials via cargo or courier through a pre-intimation system, a finance ministry spokesperson said.
“The online facility can be accessed at the CBIC (Central Board of Indirect Taxes and Customs) website,” he said.
The “ad hoc” IGST exemption will be available up to June 30, 2021, for importing Covid-related relief materials that have been donated for free distribution, the official said. “It will also cover goods already imported, but lying uncleared on date of its issuance of exemption, which is Monday,” he added. Most of exempted items attract 12% IGST. On May 1, the government reduced IGST on import of oxygen concentrators for personal use from 28% to 12% up to June 30, 2021.
[expander_maker id=”1″ more=”आगे पढ़े ” less=”Read less”]
IGST is levied on interstate transfer of goods and services and it is shared between the Centre and the state. All imports are treated as interstate supplies and accordingly IGST is levied on them in addition to the applicable custom duties.
On April 24, the government waived off basic customs duty and health cess on oxygen and oxygen-related equipment after a high-level meeting chaired by Prime Minister Narendra Modi. The decision was in addition to the exemption of basic customs duty on import of Covid vaccines for a period of three months, and anti-viral drug Remdesivir including its raw materials, for a period of six months.
Giving the rationale behind the IGST exemption, a finance ministry statement said: “The Central Government had received a number of representations from charitable organisations, corporate entities, and other associations/entities outside India seeking exemption from IGST on the import of Covid-19 relief material, donated/received free of cost from outside India for free distribution.”
Experts said the IGST exemption comes with cumbersome conditions, and for a limited period of less than two months.
[/expander_maker]
