SC brings back IGST on imported oxygen gadgets

The levy of 12 per cent Integrated Goods and Services Tax (IGST) on oxygen concentrators imported or gifted for personal use is back.

The Supreme Court on Tuesday stayed an order of the Delhi High Court that had held that May 1, 2021, finance ministry notification imposing 12 per cent IGST was unconstitutional.

The top court bench comprising Justice D.Y. Chandrachud and Justice M.R. Shah stayed the HC order which held that, during the Covid pandemic, the oxygen concentrators constitute a life-saving device and, therefore, should be treated on par

The HC order was stayed by the apex court after A-G said the GST Council will discuss this issue on June 8

with life-saving drugs.

“We are staying the operation of the High Court order till further orders,” the court said in its order.

The HC order was stayed by the Supreme Court after Attorney-General K.K. Venugopal told the court that the GST Council is meeting on June 8 to deliberate on granting an exemption to essential commodities related to Covid-19, including oxygen concentrators.

The Attorney-General also informed the court that the IGST exemption to state and its agencies for import of O2 concentrators was given as these were to be given free to poor and needy.

The High Court order holding the finance ministry notification as unconstitutional had come on a petition filed by a senior citizen Gurcharan Singh who had challenged the vires of the notification invoking Article 21C guaranteeing the right to life that also includes the right to health.

By May 1, 2021, notification, the GST on oxygen concentrators was reduced from earlier 28 per cent to 12 per cent. The petitioner had knocked on the doors of the Delhi High Court after he was asked to pay IGST on the oxygen concentrators sent to him as a gift by his nephew.