Inan attempt to speed up clearances of goods received free of cost fordistribution for Covid relief, Finance Minister Nirmala Sitharaman on Mondayundertook a quick follow up action by briefing the chief secretaries of thestates on the order on IGST exemption.
TheCentre on Monday exempted from IGST or integrated GST the import of goodsreceived free of cost for distribution for Covid relief. The exemption is adhoc and applicable on all specified imports made till June 30, 2021.
Theexemption will also cover goods already imported but lying uncleared on thedate of issuance of exemption which starts from Monday.
Ina tweet. Sitharaman said: "Quick follow-up action in briefing ChiefSecretaries of states on today's order of IGST exemption on specified #COVID19relief materials (Customs duty waiver given earlier). Will speed up clearancefor charitable organisations and others."
Thegovernment had earlier issued a notification exempting from basic customs dutyand/or health cess imports of a number of Covid related relief materials for alimited period.
Theseincluded Remdesivir injection/ API and Beta Cyclodextrin (SBEBCD), inflammatorydiagnostic (markers) kits, imports of which has been exempted from Customs dutytill Octber 31, 2021.
Also,imports of medical grade oxygen, oxygen therapy related equipment such asoxygen concentrators, cryogenic transport tanks etc., and Covid-19 vaccineshave been exempted till July 31, 2021.
TheCentral government had received a number of representations from charitableorganisations, corporate entities and other associations/entities seeking IGSTexemption on the import of Covid-19 relief material (already exempted fromCustoms duty), donated/received free of cost from outside the country for freedistribution.
TheIGST exemption, however, will be conditional. The Centre had decided that thestate governments shall appoint a nodal authority in the states for the purposeof this exemption. Such authority will then authorise any entity, relief agencyor statutory body for free distribution of such Covid-relief material.
TheFinance Ministry statement said that goods can be imported free of cost by astate governent or any entity/relief agency/statutory body authorized in thisregard for free distribution anywhere in India.
Theimporter shall produce a certificate from the said nodal authorities statingthat the goods are meant for free distribution for Covid relief.
Also,after imports, the importer shall produce to the deputy or assistantcommissioner of Customs at the port within a period of six months from the dateof importation or within such extended period not exceeding nine months, asimple statement containing details of goods imported and distributed free ofcost. This statement shall be certified by the said nodal authority of thestate government.