Donations associated to Covid-19: Haryana, Gujarat reimburse GST

Haryana and Gujarat have develop into the primary few states to announce reimbursement of Goods and Services Tax (GST) parts paid for Covid-19 associated medical provides similar to oxygen concentrators, ventilators, medicines which might be donated freed from value to the state governments. Gujarat has introduced reimbursement of IGST levied as a part of customs on import of Covid associated provides. Haryana has gone a step additional by asserting reimbursement of even Centre’s GST element by deciding to pay again all state, central or IGST parts on Covid associated provides to the state authorities.
“In order to encourage such efforts, it is necessary in the public interest to facilitate donation of such items appearing in the table annexed herewith by way of reimbursement of GST (including the state, central or IGST portions), if any, already paid on such Covid-related items,” the Haryana authorities notification mentioned.
Waiver from Haryana is until June 30, whereas that of Gujarat is legitimate until July 31. The Centre had earlier waived IGST until June 30 on the import of Covid-related aid materials donated or acquired from outdoors India free of charge distribution.
Abhishek Jain,Tax Partner, EY mentioned, “This is a much required step on the part of the Haryana government, as businesses involved in donation activities … had to unnecessarily bear the GST cost…”