In view of the covid-19 pandemic, Government had already exempted customs duty on the import of covid-19 relief materials. Now IGST is also exempted on such imports.
This exemption is granted till 30th June 2021.
Many charitable organizations, corporate entities, and other associations had continuously demanded the central government to provide this exemption.
The goods covered in this exemption are:
- Remdesivir injection/ API and Beta Cyclodextrin (SBEBCD), Inflammatory diagnostic (markers) kits. [already exempt from customs duty till 31st October 2021]
- Medical grade Oxygen, oxygen therapy related equipment such as oxygen concentrators, cryogenic transport tanks, etc, and COVID-19 vaccines. [already exempt from customs duty till 31st July 2021]
This exemption however is subject to some conditions, which are as follows.
- State Government shall appoint a nodal authority in the State for the purpose of this exemption.
- This Nodal authority shall authorize any entity or organization for free distribution of such Covid-relief materials anywhere in India.
- 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.
- 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.
Thus, any organization/entity can get approval from the nodal authority to import covid relief materials free of cost for free distribution without payment of IGST and basic customs duty for a limited period.
Click here to read the official press release by the Government.