The government is set to exempt imported personal protection equipment (PPE), ventilators, sanitisers, masks and other medical equipment from integrated goods and services tax (IGST).
Daily Current Affairs Quiz 2020
Key-Points
Currently, GoI levies 12% IGST on most of these products. Upon considering COVID-19 pandemic, the input tax credit can be availed for the PPEs, sanitizers
Hospitals that buy such products from dealers, who take the input tax credit for the supplies will be eligible for the exemption.
The exemption will be allowed from April 2020, along the lines of the exemption from basic customs duty and health cess on medical equipment, PPEs, and COVID-19 testing kits.
The government has also exempted imported input materials required for making these products locally.
Under GST, IGST is a tax levied on all Inter-State supplies of goods and services. It is governed under the IGST Act. IGST will be applicable on any supply of goods and services in both cases of import and export.
Under IGST, exports will be zero-rated, the tax will be shared between the Centre and the State Government.
