Kerala HC Grants Interim Exemption to Mother of child suffering from SMA, from payment of IGST on Imported Medicine for Rare Disease [Read Order]

The Kerala High Court granted interim exemption to mother of child suffering from ‘Spinal Muscular Atrophy ( SMA ), from payment of IGST on imported medicine for rare disease.

The petitioner is the mother of a three-year-old child suffering from a life-threatening disease, namely ‘Spinal Muscular Atrophy’ ( SMA ). The only medicine currently available for treating this ailment is ‘Risdiplam’ ( brand name ‘Evrysdi’ ), a medicine imported from a company known as F-Hoffmann-La Roche Ltd, Switzerland.

The writ petition has been filed stating that, by virtue of the provisions contained in Article 279A(4) of the Constitution of India, it is open to the Goods and Services Tax Council to make recommendations regarding the goods and services that may be exempted from the levy of Goods and Services Tax. It was pointed out that, as per the Minutes of the 26th GST Council meeting held on 10-03-2018, it was decided that the Union Finance Minister is competent to grant ad hoc exemption from IGST payable on imported goods as per the guidelines laid down in Circular No.09/2014-Customs dated 19-08-2014.

It was submitted that the present price of ‘Risdiplam’ ( brand name ‘Evrysdi’ ) is Rs.6.07 Lakh per bottle, including 12% GST. It was submitted that the application for exemption in terms of the Circular is pending consideration of the Union Finance Minister and that during pending consideration, the petitioner may be permitted to purchase ‘Risdiplam’ ( brand name ‘Evrysdi’ ) from the additional 6th respondent without payment of any GST.

A Single Bench of Justice Gopinath P observed that “It is clear from the terms of the Circular r/w the minutes of the GST Council and the provisions of Article 279A(4) of the Constitution of India that the Union Finance Minister is competent to consider the grant of exemption from IGST for the import of medicines for individuals who are suffering from life-threatening diseases. The case of the petitioner appears to be eminently qualified for the grant of such exemption.”

“Accordingly, it is directed that the petitioner will be entitled to purchase the drug Risdiplam ( brand name Evrysdi ) from the additional 6 th respondent without payment of GST. The additional 6th respondent is permitted to issue a bill of supply as contemplated by Section 31(3)(c) of the Central Goods & Services Tax Act / State Goods & Services Tax Act. This arrangement shall be provisional, and it will be open to the additional 6 th respondent to apply to this Court for further modifications/directions regarding any difficulty it may face in supplying the goods as directed” the Court noted.

To Read the full text of the Order CLICK HERE

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