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Tuesday, June 22, 2021

Donations related to Covid-19: Haryana, Gujarat reimburse GST

Gujarat has announced reimbursement of IGST levied as part of customs on import of Covid related supplies.

By: ENS Economic Bureau | New Delhi |
May 20, 2021 3:12:41 am
Gujarat has announced reimbursement of IGST levied as part of customs on import of Covid related supplies.

Haryana and Gujarat have become the first few states to announce reimbursement of Goods and Services Tax (GST) components paid for Covid-19 related medical supplies such as oxygen concentrators, ventilators, medicines which would be donated free of cost to the state governments. Gujarat has announced reimbursement of IGST levied as part of customs on import of Covid related supplies. Haryana has gone a step further by announcing reimbursement of even Centre’s GST component by deciding to pay back all state, central or IGST portions on Covid related supplies to the state government.

“In order to encourage such efforts, it is necessary in the public interest to facilitate donation of such items appearing in the table annexed herewith by way of reimbursement of GST (including the state, central or IGST portions), if any, already paid on such Covid-related items,” the Haryana government notification said.

Waiver from Haryana is till June 30, while that of Gujarat is valid till July 31. The Centre had earlier waived IGST till June 30 on the import of Covid-related relief material donated or received from outside India for free distribution.

Abhishek Jain,Tax Partner, EY said, “This is a much required step on the part of the Haryana government, as businesses involved in donation activities … had to unnecessarily bear the GST cost…”

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