IGST Exemption on imports of COVID19 relief material donated from abroad

Central Government Has Today Granted Exemption From IGST Vide Ad Hoc Exemption Order 4/2021-Customs on Imports Of  specified Covid-19 Relief Material received free of cost for free distribution for covid relief. On Such goods Custom Duty was Already Been Exempted vide Custom Duty Notification Nos. 27/2021, 28/2021 And 29/2021.

The exemption order shall apply to all such consignments pending clearance from Customs as on date of issue of order. Thus, as BCD is already exempt, such imports will not attract any customs duty or IGST. The goods covered in exemption include:

• Medical grade Oxygen, oxygen therapy related equipment such as oxygen concentrators, cryogenic transport tanks, etc
• Remdesivir injection/ API and Beta Cyclodextrin (SBEBCD), Inflammatory diagnostic (markers) kits
• Ventilators, including ventilator with compressors; all accessories and tubings; humidifiers; viral filters (should be able to function as high flow device and come with nasal canula).
• Non-invasive ventilation oronasal and nasal masks for ICU ventilators.
• Cryogenic road transport tanks for Oxygen
• Oxygen storage tanks
• Helmets for use with non-invasive ventilation
• Oxygen cylinders including cryogenic cylinders and tanks
• COVID-19 vaccines

The Chief Secretaries of states are being requested to appoint Nodal Agency and authorize relief agencies for the purpose. Necessary instructions also issued to field formations to expedite clearance of such cargo.

Also Read:Ad hoc Exemption Order No. 4/2021-Customs – FAQs

Relevant Order and Press release are reproduced below

A. Press release

Ministry of Finance

Ad hoc Exemption from IGST on imports of specified COVID-19 relief material donated from abroad

As customs duty is already exempt , these imports will not attract any customs duty or IGST

Posted On: 03 MAY 2021

In view of the COVID-19 pandemic, the Central Government has issued notifications exempting Basic Customs Duty and/or Health cess on imports of a number of COVID-19 related relief materials, for a limited period. These include–

The Central Government had received a number of representations from charitable organizations, corporate entities, and other Associations/ entities outside India seeking exemption from IGST on the import of Covid-19 relief material (already exempted from customs duty), donated/received free of cost from outside India for free distribution. Accordingly, the Central Government has vide Ad hoc exemption Order number 4/2021 dated 3^rd May, 2021 has granted exemption from IGST on import of such goods received free of cost for free distribution for covid relief.

This exemption shall apply till 30^th June, 2021. It would also covers goods already imported but lying uncleared on the date of its issuance of exemptioni.e. today.

The exemption shall be subject to the following conditions:

i. State Government shall appoint a nodal authority in the State for the purpose of this exemption. As per section 2 (103) of the Central Goods and Services Tax Act, 2017, state include a Union territory with Legislature.

ii. The Nodal authority so appointed shall authorise any entity, relief agency or statutory body, for free distribution of such Covid-relief material.

iii. The said goods can be imported free of cost by a State Government or, any entity/ relief agency/ statutory body, authorized in this regard for free distribution anywhere in India.

iv. The importer shall before clearance of goods from Customs produce a certificate from the said nodal authorities that goods are meant for free distribution for Covid relief.

v. After imports, the importer shall produce, to the Deputy or Assistant Commissioner of Customs at the port within a period of six months from the date of importation or within such extended period not exceeding nine months, a simple statement containing details of goods imported and distributed free of cost. This statement shall be certified by the said nodal authority of the State Government.

This exemption, shall thus enable import of the covid relief supply imported free of cost for free distribution without payment of IGST (upto the 30^th June, 2021).

As customs duty is already exempt , these imports will not attract any customs duty or IGST.

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B. Ad hoc Exemption Order

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Ad hoc Exemption Order No. 4/2021-Customs

New Delhi, the 3^rd May, 2021

G.S.R.316(E).– In exercise of the powers conferred by sub-section (2) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, under exceptional circumstances prevailing due to the COVID-19 pandemic, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description as specified in the notifications listed in the Appendix below, falling within the Chapter, heading, sub–heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the said notifications, when imported into India, from the whole of the integrated tax leviable thereon under sub-section (7) of section 3 of the said Customs Tariff Act, read with section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), subject to the conditions specified in the Annexure to this exemption order.

2. This exemption order shall remain in force upto and inclusive of the 30^th day of June, 2021 and shall also apply to goods which are pending for clearance on the date of issue of this order.

Appendix

Annexure

[F.No. CBIC-190354/2/2021-TO(TRU-I)-CBEC]

(Gaurav Singh)
Deputy Secretary to the Government of India