Centre grants customs, IGST exemption on donations from abroad

THE SOP HAS BEEN SENT TO THE COORDINATING OFFICERS FROM THE NITI AAYOG AND CONCERNED MINISTRIES

Centre granted blanket exemption from customs and Integrated Goods and Services Tax (IGST) for all items sent as donations from abroad as Covid relief material, according to an internal Standard Operating Procedure note on for ‘receiving Donations/gifts from abroad,’ reviewed by HT.

“Indian Red Cross Society (IRCS) will be consignee and Hindustan Latex Limited (HLL) will provide logistic support Procedure….Such offers will be given blanket exemptions from Customs, IGST and other mandatory clearances,” the SOP states. The SOP has been sent to the coordinating officers from the Niti Aayog, external affairs ministry, ministry of civil aviation and the ministry of health.

However, as explained in PIB’s statement on Tuesday, the goods will still need to be cleared by the customs department.

“The Indian Customs is sensitive to the need for availability of COVID related imports including Oxygen & Oxygen related equipment etc., and are working 24 x 7 to fast track and clear the goods on arrival and lead to expeditious clearance within hours,” the PIB statement said. It added Indian customs has waived ‘Basic Customs Duty’ and ‘Health cess’ on goods identified for defending Covid, and, conditionally, IGST.

As questions continued to swirl on Tuesday regarding allocation of oxygen-related equipment and supplies provided by other countries to back India’s Covid-19 response, the government said medical infrastructure of 38 institutions across 31 states, stretched thin because of an unprecedented surge in coronavirus infections, was strengthened using supplies from around the world. The supplies have either reached the state or are on their way, it added.

For donations related to private individuals, companies and NGO’s the SOP said the missions will need to inform the Niti Aayog and the external affairs and health ministries.

The Centre has made apex government think-tank Niti Aayog the nodal body for coordinating such offers. Niti Aayog will coordinate with the IRCS and HLL for its distribution.

“Missions will vet such offers, including verification of antecedents of donors before forwarding proposals,” it said. “Donations meant for private use will also be coordinated by Niti Aayog Such consignments will be cleared by an agency designated by Nit Aayog and its distribution will be under the direction of Niti Aayog, which will keep MEA informed,” it added.

It also said missions will share with foreign governments list of priority items prepared by the health ministry for their consideration.