With the rise of the second wave of Coronavirus, the Government of India took several steps to bring the situation to a normal condition, and still, the battle is going on. Recently, it has been observed that demand for Covid materials such as vaccines, Remdesivir medicine, and oxygen has significantly increased and most of the states of India are running out of these materials. In this article, we will discuss oxygen imports exempted from GST, with caveats.
Oxygen Imports Exempted From GST
It simply means that the import of Covid-19 materials will be exempted from the GST, but it is a temporary move and valid for June 30. Earlier, the Government has already exempted custom duty and health cess for the import of these life-saving materials.
However, the exemption has some clauses and the domestic company or charities are not included in the list, even if they are purchasing these materials. The clause clearly defines that the import of Covid-19 relief materials is exempted from GST so that all the people of a country should get the vaccines, medicines, or oxygen-free of cost.
The nodal agency will play a crucial role in this mission and they will have to look for the desirous who is willing to distribute Covid-19 materials free of cost. Such a person can approach the nodal agency and can seek the certification.
One such provision is the reduction of GST in Oxygen Concentrators from 28% to 12%. Moreover, the person or agency who is importing the oxygen concentrators doesn’t have to pay customs duty.
Still, the Corona cases are rising and the Government is giving much effort to control the same. Many people in different states are dying due to a lack of Oxygen and other medicines, so a stern step was necessary.
GST AT a Glance
GST, i.e. Goods and Services is a form of tax and categorized into various slabs. An entrepreneur, business owner, and company need to go for GST Registration to pay the taxes to the Government.
The Registration of GST is very simple and can be completed in no time. Moreover, GST Return Filing is also done through the online method and the firms get a chance to pay the taxes before the deadline.
If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.
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