Air Purifiers Qualify as Medical Devices: Delhi HC Seeks GST Council Review of 18% GST Amid Pollution Crisis [Read Order]

The Delhi High Court has called upon the Goods and Services Tax (GST) Council to urgently examine the issue of high GST on air purifiers and HEPA filters, observing that there appears to be no prima facie justification for levying tax at a higher rate on devices that perform functions similar to notified medical devices, peculiarly in the light of severe air pollution crisis affecting Delhi.

Kapil Madan, the petitioner, approached the High Court by way of a public interest writ petition challenging the continued levy of 18% GST on air purifiers classified under HSN Code 84213920. The petition arose from the grievance that despite air purifiers performing a preventive and health-protective function were excluded from the concessional tax rate of 5% as applicable to medical devices as notified under Notification dated 11.02.2020, issued under Section 3(b)(iv) of the Drugs and Cosmetics Act, 1940.

The petitioner argued that the classification resulted in arbitrary taxation, particularly when worsening air quality compelled citizens to rely on air purifiers for safeguarding health. The petitioner sought a declaration that air purifiers fall within the expanded statutory definition of “medical device” and a direction to apply the lower tax rate accordingly.

SeniorAdvocate Arvind Nayar, along with Gurmukh Singh Arora, Rahul Matharu, Akshay Joshi, and Shubham Pandey highlighted the recommendations of the Parliamentary Standing Committee on Science and Technology, Environment, Forests and Climate Change, which criticised the imposition of high tax on air purifiers and recommended abolition or reduction of GST on such devices.

The Bench comprising Chief Justice Devendra Kumar Upadhyaya, and Justice Tushar Rao Gedela observed that the concerns raised in the petition were validated by the recommendations of the Parliamentary Standing Committee and the prevailing air quality conditions in Delhi. The Court noted that devices listed as medical devices under the Notification dated 11.02.2020 attract GST at 5% and, considering the function performed by air purifiers and HEPA filters, there appeared to be no prima facie reason to deny similar treatment.

Acknowledging the constitutional structure and functioning of the GST Council, the Court directed that the issue of lowering or abolishing the Goods and Services Tax on air purifiers and HEPA filters be considered at the earliest. Further, recommended that if a physical meeting of the Council was not feasible, the matter could be taken up through video conferencing.

The case has been directed to be listed before the vacation bench to ascertain the timeline within which the GST Council could convene and take a decision.

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