‘Those importing O2 devices can afford 12% IGST’

AN 85-YEAR-OLD MAN WITH COVID OPPOSED THE 12% TAX ON AN OXYGEN CONCENTRATOR SENT AS A GIFT FROM HIS NEPHEW IN UNITED STATES

NEW DELHI: People who import oxygen concentrators for personal use or as gifts would be in a position to afford paying 12% Integrated Goods and Service Tax (IGST), the Union government told the Delhi high court on Tuesday, opposing a petition to make such imports duty free.

The matter relates to a plea filed by an 85-year-old person with Covid-19, who opposed the 12% tax on an oxygen concentrator sent as a gift from his nephew in the US. The government defended its decision to retain the tax rate and said that “significant relief has already been provided” after duties on personal imports of oxygen concentrators was reduced from 77% to 12%.

In an affidavit filed before a bench of justices Rajiv Shakdher and Talwant Singh, the Centre has said that the parity between commercial and personal imports would ensure that the personal import route remains legitimate.

“…..with a 12% IGST rate on imports of concentrators, a parity at a lower GST rate has been attained between gift, personal imports and commercial imports of oxygen concentrators. This ensures that the common man buying it through a commercial route, from a trader, or a person who could personally import, either on paying from pocket or receiving as gift, all bear the same incidence of IGST at a lower rate of 12%.

On Tuesday, after hearing lengthy arguments, the court reserved its judgment.

The Centre contended that imposition of tax or deciding the tax rates does not come under judicial review. It has said that if the argument of the petitioner is accepted, then it will lead to absurd consequences and interpretations, wherein citizens will be seeking exemption from property tax, since housing is an essential facet Right of Life under Article 21.

It also said that some may also seek exemption from taxes imposed on several food items since Right to Food has been held by the Supreme Court to be a part of Right of Life under Article 21.

The Centre also told the court that the present petition is being considered with open mind and all the considered representations including request for exemption of GST on personal import of oxygen concentrator, shall be placed before the next meeting of the GST Council, for its recommendations, as it may deem appropriate, taking into account all relevant factors and the present situation.