In the wake of the intense second Covid-19, Haryana has become the first state in the country to grant reimbursement of GST that is paid on Covid-related donations that are made to the state and state-run facilities. However, this exemption shall be valid till June 30. The aforesaid step has been taken to boost Covid-related donations by Non-Governmental Organisations (NGOs), Corporations and Individual. The goods that shall come within the domain of Covid-related items include oxygen concentrator, oxygen filling systems, oxygen storage tanks, oxygen generators, vaccine, Remdesivir, ventilators and so on.
“Haryana is facing an acute shortage of liquid medical oxygen and other health equipment such as a ventilator, medicines etc… in order to encourage efforts by corporates, NGOs and individuals coming forward to help the state government … by way of donations, it is necessary in the public interest to facilitate the donation of such items,” the state government said in a notification on Tuesday.
However, it is worthwhile mentioning here that GST reimbursement shall only be available only in the case where donation has been made to
- Government of Haryana
- State-run Hospitals
- Hospitals or institutions permitted by the state government to receive such material through Haryana’s Health and Family Welfare department.
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The steps to be taken for getting an exemption is that the health and family welfare department of the state shall issue a certificate of such donations that shall be required to be submitted by the donor to the Excise and Taxation department of the state for claiming refunds.
Harpreet Singh, the partner at KPMG, said “It is good to see, India is also slowly but surely moving in the same direction…Many corporates are supplying free Covid-19 related material to their employees and their families. GST reimbursement of such free supplies to employees, apart from the free supplies to government, is likely to provide more respite to the industry,”
