Finance Ministry reduces GST rate payable from 28% to 12%
Oxygen concentrators received as gifts or ordered online from overseas would attract Goods and Services Tax (GST), but the GST rate payable was reduced from 28% to 12% by the Finance Ministry late Saturday night.
On Friday, the government had notified changes to the foreign trade policy to allow the import of oxygen concentrators for personal use through e-commerce portals, post or courier till July 31, 2021.
Customs clearance will be granted for such imports by treating them on par with “gifts”, the government had said. So far, such an exemption was only allowed for life saving drugs and rakhis.
In response to queries on such imports for personal use as well as donations to healthcare facilities, the Delhi Customs Department had said that though Customs Duty is exempt on such imports, integrated GST on oxygen concentrator is payable. The IGST rate for commercial imports of oxygen concentrators is 12%, but 28% if imported for personal use, the generic rate on goods imported for personal use, except drugs and medicines.
However, late Saturday, the Finance Ministry said the IGST rate will be lowered to 12% for oxygen concentrators imported for personal use till the end of June this year.
“This would provide much-needed relief against the COVID fight,” EY India tax partner Abhishek Jain told The Hindu.
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