The exemption is likely to remain for a quarter starting from this month
The government is reportedly likely to waive the 12 percent integrated goods and services tax (IGST) on the import of many medical equipment including personal protective equipment (PPE), ventilators, masks and sanitizers.
Dealers who sell these products to hospitals will also be eligible for a tax input, a senior official said as per a report by The Economic Times.
“The broad decision to give the exemption has been taken… given the situation, it has been decided the credit should also be given,” the official told the paper.
Moneycontrol could not independently verify the report.
The exemption is likely to remain for a quarter staring from this month. It comes after the Centre also waived health cess and basic custom duty charges on medical equipment, PPE and COVID-19 testing kits last week, and exempted import of raw materials required to locally produce these items.
IGST is levied under GST on all inter-state supply of goods and/or services for import into or export from India. It is split between the state and central governments.
Prime Minister Narendra Modi on April 14 announced that India’s nationwide lockdown has been extended till May 3.
This comes as confirmed coronavirus infections or COVID-19 cases in India reached 11,439 as of April 15, with the death toll from the outbreak at 377. Maharashtra, Delhi and Tamil Nadu have reported the highest number of cases.
Globally, there have been over 19.8 lakh confirmed cases of COVID-19 and at least 1.26 lakh people have died so far.Follow our full COVID-19 coverage here