0% IGST on Import of Covid-related relief material
The Government of India recently waived the Integrated GST till June 30, 2021. This included Remdesivir, Beta cyclodextrin, medical grade oxygen, oxygen concentrators, cryogenic transport tanks, etc.
The Government of India has provided exemptions under the following conditions:
- A Nodal Authority should be appointed by the State Government in accordance with the Central Goods and Services Act, 2017.
- This Nodal Authority will authorize for free distribution of COVID-19 relief material. These goods shall be imported free of cost by the State Government.
What is IGST?
It is one of the three components of Goods and Services Tax. IGST is Integrated Goods and Services Tax. It is levied on inter-state transfer of goods and services. According to the GST rules, IGST is shared between the centre and the state in the ratio of 50:50.
Under Article 279A of the Constitution, President forms the GST council to administer and govern GST. The chairman of GST council is Union Finance Minister of India. The council is planned in such a way that the states will have two-third voting power and the centre will have one-third voting power.
GST eligibility in India
In India, every business with turnover more than forty lakh rupees is required to pay GST. The limit is more than ten lakh rupees for the North East and hilly states.
Inception of GST in India
In India, the history of GST dates back to 2000. It was suggested by the Vajpayee Government. The then State Finance Ministers formed an Empowered Committee to create a structure of GST.
Category: Economy & Banking Current Affairs
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