PM SPG Denied GST Exemption by the Council

Security goods which are imported for Special Protection Group (SPG) who guards the Prime Minister has not been exempted from GST making a weird situation for the ministry. The fitment Committee of the GST Council has rejected the request for exemption of security goods from the IGST and indemnity cess on the goods imported for SPG. The Committee clearly states that under the existing provisions of GST it is not possible to give such a rebate.

The sources said that in the 25th meeting of the GST Council held in New Delhi on January 18, the fitment committee has introduced a list of nearly 100 items, in which it has been requested to reduce the rates of GST from different industries and to give exemptions. The same list also included the request for exemption of the security goods imported for the SPG from IGST and indemnity cess.

Sources said that it has been requested to give a concession and exemptions under the CGST law from customs duty, IGST and indemnity cess on the items imported from abroad for safety and relevant use. The fitment Committee of GST Council considered this issue, however, the committee is not in favour of giving such exemption to SPG.

It is being said that the biggest argument in favour of giving GST discount to SPG is that before the implementation of GST, customs duty on all imports of SPG, additional duty of customs charges, which is commonly known as CVD was exempted from the special duty of customs known as SAD. However, after the GST implementation, the CVD and SAD have been eliminated and now IGST is applicable to the imports. Also, the products that fall within the scope of the indemnity cess have to bear the taxes. It is learned from the sources that such tax cannot be exempted under the current provisions of GST laws.

Read Also: Full Description of SGST, IGST, CGST with Input Tax Credit Adjustment

The fitment committee comprises officers from the Center and the states which determine the rates of GST on various goods and services. Although, the final decision is made by the Council. It is to be noted that the committee has also rejected the proposal to grant exemptions to the central police canteen.