The Delhi High Court issued the notice to Delhi Government, GST Council on a plea seeking GST relief on COVID-19 Imports Purchased for donations to states.
The petitioner, International Cargo Terminal and Rail Infrastructure Pvt. Ltd. imported oxygen cylinders and regulators from foreign and thereafter, donated them to the Delhi government for free distribution to the people , however, it had to remit GST on such imports.
The petitioner argued that when corporate entities purchase oxygen cylinders and regulators and pass it on the state government ‘for free’ i.e., donated to State-approved entities for free distribution, yet they have to remit GST on such imports. However, on the other hand, if a state or its agencies/instrumentalities import the same items, they don’t have to remit GST.
“When oxygen supply is suddenly augmented, there is bound to be a shortage of containers, canisters and cylinders to store the increased volumes of oxygen supplied to a particular State,” the petition pointed out, so States need to raise their stocks of oxygen cylinders and regulators.
“We request the learned ASG (Additional Solicitor General), to place the facts of the instant case before the GST Council. We recognise that the time is short, however, if an endeavour is made, it will help us dispose of this writ petition,” the division bench of Justices Rajiv Shakdher and Talwant Singh said.
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