The Government has notified the extension of the exemption from IGST on imports of specified COVID19 relief material donated from abroad from 30th June 2021 till the 31st day of August 2021.
The Central Government, under exceptional circumstances prevailing due to the COVID-19 pandemic, on being satisfied that it is necessary in the public interest so to do, made the amendment in the ad hoc exemption order of the Government of India, in the Ministry of Finance (Department of Revenue), No. 4/2021-Customs, dated the 3rd May, 2021.
As per the exemption order No. 4/2021-Customs, dated the 3rd May, 2021 was in respect of Ad hoc Exemption from IGST on imports of specified COVID19 relief material donated from abroad.
The notification said, “in the said order, in paragraph 2, for the figures, letters and words “30th day of June, 2021”, the figures, letters and words “31st day of August 2021” shall be substituted.”
The Government has laid down various conditions to claim the exemption on specified COVID19 relief material donated from abroad.
Firstly, the COVID19 relief goods are imported free of cost for the purpose of Covid relief by a State Government or, any entity, relief agency or statutory body, authorised in this regard by any State Government. Thus, it is clear that the ad hoc exemption order applies only where the importer gets goods free of cost for free distribution. Other instances are not covered by the exemption order.
Secondly, a number of references have been received informing that many entities, including Corporates, intend to source COVID relief material from abroad and distribute it freely, availing the IGST exemption under the said Order. Thirdly, It may be mentioned that in case any corporate buys it and even gives it for free, such exemption will not be available. To reiterate, it is available when said goods are imported free of cost for the purpose of Covid relief by a State Government or, any entity, relief agency or statutory body, authorised in this regard by any State Government.
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