Policy

Covid-19 relief materials received from abroad to get IGST waiver

Our Bureau New Delhi | Updated on May 03, 2021

The exemption will be subject to a few conditions

Exemption shall apply till June 30

The Finance Ministry on Monday granted exemption from the Integrated Goods & Services Tax (IGST) for the Covid-19 relief material received from abroad.

“The Central government had received a number of representations from charitable organisations, corporate entities, and other associations outside India seeking exemption from the IGST on the import of Covid-19 relief material (already exempted from the customs duty), donated/received free of cost for free distribution. Accordingly, the government has granted exemption from the IGST on the import of such goods,” the Ministry said in a statement. This exemption shall apply till June 30. It would also cover goods already imported but lying uncleared on the date of its issuance of exemption i.e., Monday.

Nodal authority

The exemption will be subject to a few conditions, including the State government appointing a nodal authority that will authorise any entity, relief agency or statutory body for free distribution of such Covid-relief materials. The importer will produce a certificate from the said nodal authority that the goods are meant for free distribution for Covid-19 relief. The importer will then produce a statement, certified by the said nodal authority, containing details of the goods imported and distributed free of cost to the Deputy or Assistant Commissioner of Customs at the port, within a period of six months from the date of import or within such extended period not exceeding nine months.

The Centre has already issued two notifications: One exempts duty on remdesivir injection, inflammatory diagnostic (markers) kits, till October 31. The second prescribes exemption on medical grade oxygen, oxygen therapy related equipments and Covid-19 vaccines till July 31.

Published on May 03, 2021

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