Background:
Earlier, the 50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, wherein it was recommended to exempt IGST on medicines and inclusion of RBL Bank and ICBC Bank included in the list of specified banks for which IGST exemption is available on imports of gold, silver or platinum.
Notification:
Now, the CBIC vide Notification No. 46/2023-Customs dated July 26, 2023 has issued amendment in Notification No. 50/2017-Customs dated June 28, 2017 to implement the recommendations of the 50th GST Council meeting.
All the changes are summarised below for your bare perusal :
1. IGST Rate on Import of medicines
Against S. No. 167A, in column (5), for the entry, the entry “Nil” shall be substituted for the following Description of Goods –
Drugs, Medicines or Food for Special Medical Purposes (FSMP) used for the treatment of rare diseases.
Condition of Import – If the importer produces before the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, an assay certificate issued by the mining company, giving details of the composition.
2. Against S. No. 607B, in column (5), for the entry, the entry “Nil” shall be substituted;
Drugs, Medicines or Food for Special Medical Purposes (FSMP) used for treatment of rare diseases specified in List 38
Impact of the Notification:-
It has been decided to exempt IGST on medicines and Food for Special Medical Purposes (FSMP) used in treating rare diseases enlisted under the National Policy for Rare Diseases, 2021 when imported for personal use subject to existing conditions. Similarly, IGST exemption is also being extended to FSMP when imported by Centres of Excellence for Rare Diseases or any person or institution on the recommendation of any of the listed Centres of Excellence.
3. IGST Rate on Import of medicines
Against S. No. 607, after clause (c) and the entries relating thereto, the following clause and entries shall be inserted, namely: –
“(d) Medicine Dinutuximab (Quarziba), used in the treatment of Cancer Subject to Condition 16 for production of certificate”
Impact of The Notification & Recommendations:-
It has been decided to exempt IGST on Dinutuximab (Quarziba) medicine when imported for personal use.
4. IGST on Import of Gold, etc by banks/entities
For S. No. 359A and the entries relating thereto, the following S. No. and entries shall be substituted, namely: – Import of –
(a) Gold or Silver or both by banks as per List 34A;
(b) Gold by banks as per List 34B;
(c) Gold/Silver/ Platinum by entities as per List 34C
Impact of The Notification & Recommendations –
It has been decided to include RBL Bank and ICBC Bank in the list of specified banks for which IGST exemption is available on imports of gold, silver or platinum and update the list of banks /entities eligible for such IGST exemption as per Annexure 4B (HBP) of Foreign Trade Policy 2023
5. FTP Related amendments
Notification No. 45/2017-Customs & Notification No. 47/2017-Customs, dated June 30, 2017, have been amended w.r.t. RoDTEP and RoSTCL Schemes and other amendments in Foreign Trade Policy.
These are consequent to the New Foreign Trade policy Announced on April 01, 2023.
The Notification can be accessed at: https://egazette.gov.in/WriteReadData/2023/247628.pdf
(Author can be reached at info@a2ztaxcorp.com)
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