Exemption from IGST on imports of specified COVID-19 relief material whether on FOC or Payment basis for free distribution

Background:

The Ministry of Finance issued Press Release dated May 28, 2021 pertaining to decisions taken in the 43rd GST Council meeting wherein recommendations was made w.r.t. full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto August 31, 2021. Following notification has been issued in this regard:

Notification:

The CBIC vide Notification No. 32/2021- Customs dated May 31, 2021 provided exemption from IGST on import of following material from abroad on goods listed in below mentioned notifications till August 31, 2021:

Conditions:

1. The imported goods are donated to the Central Government or State Government or, on recommendation of State authority, to any relief agency, entity or statutory body (“relief agency”) for free distribution.
2. Before clearance of the said goods, the importer submits to the Deputy or the Assistant Commissioner of Customs, a certificate from the Central Government, or a nodal authority [including as appointed by a State Government for the purposes of Ad hoc Exemption Order No. 4/2021-Customs, dated May 3, 2021], that the imported goods are meant for free distribution for COVID relief, as the case may be, by the Central Government, State Government, or a relief agency as recommended by the said nodal authority in such certificate.
3. The importer produces before the Deputy or the Assistant Commissioner of Customs at the port of import, within a period of 6 months from the date of importation, or within such extended period not exceeding 9 months from the said date as that Deputy or Assistant Commissioner of Customs may allow,-
   1. a certificate from the Central Government or State government, as the case may be, that the imported goods were received by them for free distribution; or
   2. in case the imported goods are donated to any relief agency on the recommendation of the nodal authority, a statement containing details of the said goods distributed free of cost (“FOC”), duly certified by the said nodal authority of the State Government.

Our Comments:

a. Exemption from IGST on import of COVID-19 relief material import on FOC basis and distribution FOC basis – It has been exempted vide Ad hoc exemption Order No. 04/2021 dated May 03, 2021 subject to specified conditions upto June 30, 2021 and, now, this is further extended till August 31, 2021 vide Ad hoc Exemption Order No. 05/2021-Customs dated May 31, 2021.

b. Exemption from IGST on import of COVID-19 relief material import on payment basis and distribution FOC basis – It has been exempted vide Notification No. 32/2021- Customs dated May 31, 2021 subject to specified conditions, supra and valid upto August 31, 2021.

The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2021/cs-tarr2021/cs32-2021.pdf

Background:

The Ministry of Finance issued Press Release dated May 28, 2021 pertaining to decisions taken in the 43rd GST Council meeting wherein recommendations was made w.r.t. full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto August 31, 2021. Following notification has been issued in this regard:

Notification:

The CBIC vide Notification No. 32/2021- Customs dated May 31, 2021 provided exemption from IGST on import of following material from abroad on goods listed in below mentioned notifications till August 31, 2021:

Conditions:

1. The imported goods are donated to the Central Government or State Government or, on recommendation of State authority, to any relief agency, entity or statutory body (“relief agency”) for free distribution.
2. Before clearance of the said goods, the importer submits to the Deputy or the Assistant Commissioner of Customs, a certificate from the Central Government, or a nodal authority [including as appointed by a State Government for the purposes of Ad hoc Exemption Order No. 4/2021-Customs, dated May 3, 2021], that the imported goods are meant for free distribution for COVID relief, as the case may be, by the Central Government, State Government, or a relief agency as recommended by the said nodal authority in such certificate.
3. The importer produces before the Deputy or the Assistant Commissioner of Customs at the port of import, within a period of 6 months from the date of importation, or within such extended period not exceeding 9 months from the said date as that Deputy or Assistant Commissioner of Customs may allow,-
   1. a certificate from the Central Government or State government, as the case may be, that the imported goods were received by them for free distribution; or
   2. in case the imported goods are donated to any relief agency on the recommendation of the nodal authority, a statement containing details of the said goods distributed free of cost (“FOC”), duly certified by the said nodal authority of the State Government.

Our Comments:

a. Exemption from IGST on import of COVID-19 relief material import on FOC basis and distribution FOC basis – It has been exempted vide Ad hoc exemption Order No. 04/2021 dated May 03, 2021 subject to specified conditions upto June 30, 2021 and, now, this is further extended till August 31, 2021 vide Ad hoc Exemption Order No. 05/2021-Customs dated May 31, 2021.

b. Exemption from IGST on import of COVID-19 relief material import on payment basis and distribution FOC basis – It has been exempted vide Notification No. 32/2021- Customs dated May 31, 2021 subject to specified conditions, supra and valid upto August 31, 2021.

The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2021/cs-tarr2021/cs32-2021.pdf