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Relaxation from GST on import of COVID-19 related products

Relaxation from GST on import of COVID-19 related products

In the GST council met held on 28th May, 2021, an important recommendation related to COVID-19 products has been taken to provide relief from COVID-19.

  • A number of specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. 
  • This exemption shall be valid upto 31.08.2021. 
  • Hitherto, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.20201. It may be mentioned that these goods are already exempted from Basic Customs duty. 
  • In view of rising Black Fungus cases, the above exemption from IGST has been extended to Amphotericin B.
  • In regards to individual items, it was decided to constitute a Group of Ministers (GoM) to go into the need for further relief to COVID-19 related individual items immediately. The GOM shall give its report by 08.06.2021.
  • To support the LympahticFilarisis (an endemic) elimination programme being conducted in collaboration with WHO, the GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%).
  • Certain clarifications/clarificatory amendments have been recommended in relation to GST rates. Major ones are, - 
    • Leviability of IGST on repair value of goods re-imported after repairs. 
    • GST rate of 12% to apply on parts of sprinklers/ drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) to apply even if these goods are sold separately.



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