This post deals with a subject directly related to the Covid-19 crisis. We would urge readers to read it until the end to keep themselves updated on the latest developments.
GST on Imported Oxygen Concentrators Slashed
On May 1, 2021, most Indians woke up hearing a piece of good news, ‘GST on Imported Oxygen Concentrators Slashed‘. Yes, that’s true. The GOI has slashed the Integrated GST rate on imported oxygen concentrators for personal use from 28% to 12% till June 30, 2021.
A taxpayer/business has to go through the GST registration process to register under the GST laws. Once the GST registration process is complete, the Central government issues a unique 15-digit Goods and Services Tax Identification Number (GSTIN) to the taxpayer/business. Once registered, GST return filing becomes a mandatory regulatory requirement.
The GST return filing for a business is subject to four tax slabs, with 5% being the lowest and 28% being the highest. The lowest rate applies to daily household essentials such as edible oil, sugar, etc. On the other hand, the highest slab of 28% applies to luxury items such as cars, Acs, refrigerators, etc.
Further Notification by Central Government
Imported oxygen concentrators for personal use were earlier being taxed under the 28% tax slab, the tax rate for luxury items. However, because of the current Covid-19 crisis and the shortage of oxygen, the government has decided to slash the GST rates on imported oxygen concentrators for personal use from 28% to 12%.
The government has decided to allow the imports of oxygen concentrators for personal use through courier, post, e-commerce portals, and other legitimate means under the gift category.
The deadly second wave of Coronavirus has led to an unprecedented increase in the demand for oxygen and oxygen-related equipment. On Tuesday, May 4, 2021, India registered 357,229 fresh Covid-19 cases and as many as 3,438 deaths. In the last week only, 2,613,415 new cases reported.
The Central government is doing all it can to ensure hospitals, state governments, and patients do not fall short of necessary medical supplies. Last month, it waived customs duty on importing oxygen concentrators, medical-grade oxygen, and other oxygen-related medical equipment.
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