Decision on IGST on imported O2 concentrators on May 28

A Covid-19 patient on oxygen support at a hospital in Meerut, Uttar Pradesh, on Sunday. Pic/PTI

The GST Council is its upcoming meeting, scheduled to be held on May 28, is likely to take a call on levy of 12 per cent tax on import of oxygen concentrators for personal use.

The Delhi High Court on Friday said that imposition of 12 per cent Integrated GST (IGST) on oxygen concentrators for personal use or those received as gifts is "unconstitutional". The observation came on a plea filed by an 85-year old Covid-19 patient whose relative had sent an oxygen concentrator from the US. It also quashed a May 1 notification of the Finance Ministry that said a 12 per cent IGST will be levied on oxygen concentrators imported for personal use or gift.

Sources said the final decision on this issue would be taken by the GST Council in its upcoming meeting on Friday. Tax experts said the Council may decide to exempt IGST on such imports as the revenue implications would not be much.

Abhishek Jain, Tax Partner, EY, said, the government had already provided exemption from IGST on free import of oxygen concentrators for Covid-19 relief by any state government or any agency authorised by the state government. "The Delhi HC has beneficially extended the benefit of this IGST exemption to personal import as gifts for individual use as well. Given the enormity of the pandemic situation... the government may consider extending the benefit."

AMRG & Associates Senior Partner Rajat Mohan said collecting tariffs on medical equipment, medicines, and vaccines, scarcity of which is leading to the death of millions, is against the nation's fundamental principles. "Lowering prices for Covid-19 related material is needed, and neutralising tax on all such imports is one such effective method that would have an immediate trickle-down effect on the entire supply chain," Mohan added.

The council in its May 28 meeting also likely to discuss tax rate cuts on Covid essentials, besides compensation shortfall of states.

Moderna refuses vax to Punjab, says can sell only to Centre

Chandigarh: Moderna, the US-based Covid-19 vaccine manufacturer, has refused to send vaccines directly to the Punjab government stating that it only deals with the Centre, a senior state official said on Sunday.

Punjab's nodal officer for vaccination Vikas Garg said according to Chief Minister Amarinder Singh's directions, all vaccine manufacturers were approached for direct purchase of Covid vaccines including Sputnik V, Pfizer, Moderna, and Johnson & Johnson.

A reply was received only from Moderna wherein the company refused to deal with the state government, he said.

According to Moderna's policy, it deals with the government of India and not with any state government or private parties, the Punjab government said in a statement.

Earlier, the CM had directed officials to explore possibilities of floating a global tender for the procurement of vaccines from all possible sources to ensure that people of the state are vaccinated at the earliest.

Notably, Punjab was forced to stop vaccination for phase I and phase II categories because of the non-availability of vaccine doses.

All efforts would be made for the procurement of vaccines to meet the acute shortage in the state, which had received fewer than 44 lakh vaccine doses so far from the government of India, the statement said.

From the Centre's allocation for 18-44 age group beneficiaries, the state government has been able to buy only 4.2 lakh vaccine doses, including 66,000 received on Saturday, Garg said. Only 64,000 doses are left, he said.

Exec director's remark not the firm's view: SII

Serum Institute of India (SII) has disassociated itself from its executive director Suresh Jadhav's statement that the Centre began the vaccination of multiple age groups without taking into consideration the available stock and the WHO rules. In a letter to the home ministry, SII stated that this was "not the view of the company", and clarified that only CEO Adar Poonawalla is the firm's official spokesperson.

Also Read: Mumbai's Test Positivity Rate rises to over 6 per cent, new cases go up too

2,65,30,132
Total no. of coronavirus cases in India so far

2,99,266
Total no. of deaths due to the virus in India so far

28,05,399
Total no. of active cases in India

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