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CBIC Notifies 5% GST on 18 Covid Relief Items

The central board of Indirect taxes and customs (CBIC) Tuesday notified 5% GST on 18 covid- related relief material including oxygen concentrates and remdesivir injection, and reduced the tax on ambulances from 28% to 12%, till September 30.

The Board has rescinded the notification imposing 12% integrated good and services tax (IGST) on oxygen concentrators import for personal use.

The rate reduction has been done “on being satisfied that it is necessary in the public interest to do so, on the recommendation of the (GST) Council,” the Board said.

The matter of IGST on import of oxygen concentrates is currently pending in the Supreme Court, and is likely to be heard towards the end of the month. The SC had declared as “unconstitutional” IGST on oxygen concentrates imported as gifts for personal use.

While the rate has been reduced to 5% from 12% on concentrates, experts said the apex court’s decision would be on the validity and constitutionality of the levy of GST and its complete exemption. “It will be desirable if this issue is heard and decided expeditiously by the SC in order to avoid multiplicity of judicial proceeding, besides giving clarity to the importers with regard to tax position to be adopted,” said Prateeks Bansal, associate partner, White and Brief Advocates.

The GST Council last week decided to temporarily lower rates on Covid- related items including medicines oxygen concentrates, testing kits and hand sanitizers to 5% until September 30. Rate on vaccines is unchanged at 5%.

The levy on oxygen generators, pulse oximeters, ventilators, hand sanitizers, Bi-pap machines as well the items cited above has been lowered to 5% from 12% or 18%. Also ministry, while Tocilizumab and Amphotericin B have been completely exempted from GST.

The central board of Indirect taxes and customs (CBIC) Tuesday notified 5% GST on 18 covid- related relief material including oxygen concentrates and remdesivir injection, and reduced the tax on ambulances from 28% to 12%, till September 30.

The Board has rescinded the notification imposing 12% integrated good and services tax (IGST) on oxygen concentrators import for personal use.

The rate reduction has been done “on being satisfied that it is necessary in the public interest to do so, on the recommendation of the (GST) Council,” the Board said.

The matter of IGST on import of oxygen concentrates is currently pending in the Supreme Court, and is likely to be heard towards the end of the month. The SC had declared as “unconstitutional” IGST on oxygen concentrates imported as gifts for personal use.

While the rate has been reduced to 5% from 12% on concentrates, experts said the apex court’s decision would be on the validity and constitutionality of the levy of GST and its complete exemption. “It will be desirable if this issue is heard and decided expeditiously by the SC in order to avoid multiplicity of judicial proceeding, besides giving clarity to the importers with regard to tax position to be adopted,” said Prateeks Bansal, associate partner, White and Brief Advocates.

The GST Council last week decided to temporarily lower rates on Covid- related items including medicines oxygen concentrates, testing kits and hand sanitizers to 5% until September 30. Rate on vaccines is unchanged at 5%.

The levy on oxygen generators, pulse oximeters, ventilators, hand sanitizers, Bi-pap machines as well the items cited above has been lowered to 5% from 12% or 18%. Also ministry, while Tocilizumab and Amphotericin B have been completely exempted from GST.S-ET

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