IGST on Import of Oxygen Concentrators reduced

May 4, 2021

The Ministry of Finance recently cut the IGST on import of oxygen concentrators for personal use to 12%. Earlier it was 28%. IGST is Integrated Goods and Services Tax. The decision was announced by the Central Board of Indirect taxes and Customs.

The changes are being made in accordance to the IGST Act, 2017.

Constitutional Provisions

Article 286

Under the article, no states are allowed to impose tax on the purchase or sale of goods in the following:

Import of Export of Goods
Every sale or purchase that is happening outside the state

Article 269

The following taxes shall be collected by the Central Government by assigning it to the State Government:

Taxes on Properties other than agricultural land
Taxes on Railway fares and freights
Tax on goods or passengers carried by sea, air or railways
Taxes on stamp duties on transaction in stock exchanges
Estate duty on property other than agricultural land
Taxes on consignment of goods
Taxes on sale or purchase of goods other than newspapers

Background

As the second wave of COVID-19 in increasing in the country, The Government of India recently allowed import of oxygen concentrators for personal use. This shall be done through E-Commerce portals or gift category. In order to achieve this Oxygen Concentrators were included in gift category.

Legal provisions

The Import of Oxygen Concentrators for personal use was allowed by amending Foreign Trade Policy (2015-20). In 2020, GoI extended the Foreign Trade Policy till 2021.