Supreme Court Says Delhi HC Oxygen Concentrator Order

Now 12% IGST instead of 28% on concentrators purchased overseas as gifts for personal consumption

Buying an oxygen concentrator overseas will now result in an Integrated Goods and Services Tax (IGST) of 12% to 28%, following the Supreme Court’s suspension on Tuesday of an order to the Delhi High Court on the matter.

Commercial imports of concentrators are also taxed at 12%. While the imported concentrators received as a gift were exempt from tax as a result of the HC order, Revenue Secretary Tarun Bajaj said last Friday that the cancellation of the relevant notification by the HC had increased the rate of l ‘IGST at 28% for those purchasing overseas hubs for personal use. use.

Thus, three rates of GST were applicable on imported oxygen concentrators for different categories of users, until the SC suspended the HC order.

“The Supreme Court’s suspension of the Delhi HC ruling that no IGST should be levied on the importation of oxygen concentrators as gifts by individuals for personal consumption would imply that an IGST of 12% will be levied on such import transactions until a final decision. verdict is delivered, ”said Abhishek Jain, tax partner at EY.

Also Read: Delhi High Court Cancels GST on Oxygen Concentrators

A group of GST Council ministers (GoMs) have been tasked with reviewing the tax treatment of these imports, as well as possible tax exemptions on other essential COVID-19 supplies such as vaccines, drugs and medicines. oxygen cylinders.

“As such, the GoM’s decision becomes all the more important and the GoM may consider extending the benefit of the IGST exemption to relief equipment imported by individuals for their personal consumption,” Jain said. .

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