Exemption of Custom Duty and IGST on Import of Covid Material

12.05.2021: Recently, the government of India has provided various custom duty exemptions on the import of covid related material in India. In this regard, various custom notifications, orders, and a list of Frequently asked questions were issued to facilitate the importers.

In this regard the Finance Minster Smt. Nirmala Sitharaman has shared the details of these exemptions with the Chief Minister of West Bengal Smt. Mamata Banerjee. These tweets came in response to the letter written by the Chief Minister to the Prime Minister, who requested to provide an exemption from Customs duties on imports. You may read more details from the below tweet.

1/ Hon. CM of West Bengal @MamataOfficial has written to the Hon @PMOIndia seeking exemption from GST/Customs duty and other duties and taxes on some items and COVID related drugs.

My response is given in the following 15 tweets.@ANI @PIB_India @PIBKolkata pic.twitter.com/YmcZVuL7XO

— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 9, 2021

List of Items exempted from Customs Duties

Here is the list of items that are exempted from customs duties, IGST, and health cess on imports of Covid related material.

1. Remdesivir Active Pharmaceutical Ingredients
2. Beta Cyclodextrin (SBEBCD) used in the manufacture of Remdesivir
3. Injection Remdesivir
4. Oxygen concentrator including flow meter, regulator, connectors, and tubings.
5. Medical Oxygen
6. Vacuum Pressure Swing Absorption (VPSA) and Pressure SwingAbsorption (PSA) oxygen plants, Cryogenic oxygen Air Separation Units (ASUs) producing liquid/gaseous oxygen.
7. Oxygen canister, Oxygen filling systems, Oxygen storage tanks, and Oxygen generator
8. ISO containers for Shipping Oxygen, Cryogenic road transport tanks for Oxygen, and Oxygen cylinders including cryogenic cylinders and tanks.
9. Parts of goods at S.No. 4 and 6 to 9 above, used in the manufacture of equipment related to the production, transportation, distribution, or storage of Oxygen, subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.
10. Any other device from which oxygen can be generated
11. Ventilators, including ventilator with compressors; all accessories and tubings; humidifiers; viral filters
12. High flow nasal canula device with all attachments; nasal canula for use with the device.
13. Helmets for use with non-invasive ventilation.
14. Non-invasive ventilation oronasal masks for ICU ventilators
15. Non-invasive ventilation nasal masks for ICU ventilators
16. COVID-19 vaccine
17. Inflammatory Diagnostic (marker) kits, namely-IL6, D-Dimer, CRP(C-Reactive Protein), LDH (Lactate De-Hydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents.”

Related Notifications and Orders

In this regard the CBIC has issued below notifications and orders giving effect to the above exemptions.

1. 27/2021-Cus,dt. 20-04-2021

To provide an exemption of customs duty on import of Remdesivir injection, Remdesivir API, and Beta Cyclodextrin (SBEBCD) used in the manufacture of Remdesivir, up to 31st October 2021.

2. 28/2021-Cus,dt. 24-04-2021

To provide an exemption of customs duties and health cess on import of oxygen, oxygen related equipment and COVID-19 vaccines, up to 31st July, 2021.

3. 29/2021-Cus,dt. 30-04-2021

Amendment of notification No. 27/2021-Customs to exempt customs duty on import of specified Inflammatory Diagnostic (markers) kits, up to 31st October, 2021.

4. 30/2021-Cus,dt. 01-05-2021

The customs notification to reduce IGST on Oxygen Concentrators when imported for personal use.

5. Frequently Asked Questions on IGST Exemption on Covid material

An order is issued to exempt IGST on imports of specified COVID-19 relief material donated from abroad, up to 30th June 2021 having order ref. no. 04/2021-customs dt. 03.05.2021.

6. Instructions for exemptions of IGST

Read the instructions and procedure to be followed to avail the IGST exemption for importing covid related material. Also, Read the DO Letter from Revenue Secretary. Similarly, you may also download the sample authorization format.

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