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Indirect Tax Alert - Customs: IGST exemption on import of Remdesivir, medical oxygen, Oxygen concentrator etc.

10 May 2021

  • CBIC had exempted Customs duty on import of Remdesivir and customs duty and health cess on import of medical oxygen, oxygen concentrator etc. vide notification no: 27/2021–Customs dated 20 April 2021 and notification no:28/2021–Customs dated 24 April 2021, respectively.
  • Further, CBIC has now exempted IGST on import of the goods specified in those notifications. The exemption shall be in force till 30 June 2021.
  • The import could be either by state government, any entity, organisation, statutory authority, or relief agency for free distribution anywhere in India.
  • The exemption covers the goods already imported and lying uncleared till 3 May 2021.
  • In order to ensure that the goods received free of cost under this exemption notification are actually distributed free of cost for intended purpose, certain conditions are also prescribed.
  • It also decided to appoint a nodal authority to oversee these activities. CBIC has also issued  instruction no:09/2021-Customs dated 03 May 2021 regarding the appointment and functions of the nodal authority.
  • It is also prescribed that the importer has to produce an end use certificate to Customs within 6 months from importation (or if extended, within 9 months) from nodal authority nominated by the state government.

[Ad hoc Exemption Order no:4/2021-Customs, Instruction no:09/2021-Customs & CBIC-190354/2/2021-TO(TRU-I)-CBEC(Part-I) dated 3 May 2021]