The Central Board of Indirect Taxes and Customs (CBIC) on Monday declared “Ad hoc Exemption from IGST” of “imports of specified COVID-19 relief material” that is “donated from abroad”. However, CBIC has notified certain conditions for applicability of the aforesaid exemption.
The first endeavour in providing an exemption shall be the appointment of a “nodal authority” in the concerned state. “Under section 2 (103) of the Central Goods and Services Tax Act (CGST Act), 2017, the word states also includes a Union territory having Legislature.”
In the second step, The Nodal authority that has been appointed shall give authorisation to any entity, statutory body, or relief agency for the purpose of free distribution of such Covid-relief material.
In the third stage, the abovementioned “COVID-19 relief material” could be imported free of cost (without tax) by a State Government or any entity/ statutory body/relief agency which has been authorized in this regard for the purpose of free distribution across any corner of India.
Fourthly, the concerned importing authority shall, prior to clearance of goods from Customs, present a certificate from the aforesaid nodal authorities indicating that the goods are meant for free distribution for the purpose of providing Covid relief.
Lastly and Importantly, after making imports, the importer shall be producing a statement containing the “details of goods imported and distributed free of cost” to the Deputy Commissioner or Assistant Commissioner of Customs at the respective port before a period of 6 months from the date of import of material or before such extended period that shall not exceed nine months. This statement shall be certified by the aforesaid nodal authority of the State Government.
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The CBIC said, “Field formations may take special note that the exemption order shall apply to all such consignments pending clearance from Customs as on date of issue of order, i.e. the 3rd May 2021.”
The CBIC further notified that the Revenue Secretary shall have to write to all the concerned Chief Secretaries for creating a nodal agency of a State/Union Territory for the purpose of taking immediate action for imports of such relief material. And The State Governments, relief agencies, and importers may approach the customs in case they would face any issues/difficulty.
