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Thursday, June 24, 2021

12% IGST ruling: Top court stays Delhi HC order on imported concentrators

Issuing notice on an appeal filed by the Finance Ministry, a bench of Justices D Y Chandrachud and M R Shah stayed the operation of the May 21 order High Court judgment till the next date of listing.

By: Express News Service | New Delhi |
June 2, 2021 3:39:26 am
The High Court had said the category of life-saving drugs also includes oxygen concentrators. It had quashed a May 1 notification by the Centre which reduced the IGST rate from 28 to 12 per cent.

The Supreme Court Tuesday stayed a Delhi High Court order which had held the 12 per cent Integrated Goods and Services Tax (IGST) on import of oxygen concentrators by individuals for personal use as “unconstitutional”.

Issuing notice on an appeal filed by the Finance Ministry, a bench of Justices D Y Chandrachud and M R Shah stayed the operation of the May 21 order High Court judgment till the next date of listing.

The High Court had said the category of life-saving drugs also includes oxygen concentrators. It had quashed a May 1 notification by the Centre which reduced the IGST rate from 28 to 12 per cent.

Appearing for the Ministry, Attorney-General K K Venugopal said the GST Council, in its 43rd meeting held on May 28, had decided to constitute a Group of Ministers (GoM) to scrutinize the need for “further relief to Covid-19 related individual items immediately”. The GoM is to submit its report by June 8.

He said the High Court verdict trenches upon a pure issue of policy. Venugopal said the court did not consider that IGST exemption had been already granted to the states and other government agencies on the import of oxygen concentrators.

“Earlier the IGST was 77 per cent. We brought it down to 28 per cent and it was further brought down to 12 per cent but they still say that Article 21 is violated,” Venugopal said.

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