| Question And Answer | |
|---|---|
| Subject: | Is an NGO eligible for GST exemption on procurement of covid relief equipment and materials like oxygen concentrator etc. |
| Category: | GST |
| Querist: | G PRABHAKAR |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | charitable trust, Exemption, Procurement of COVID relief equipments |
| Date: | May 15, 2021 |
WILL A NGO IS ELIGIBLE FOR GST EXEMPTION ON PROCUREMENT OF COVID RELEF EQUIPEMNTS AND
MATERIALS LIKE OXYGEN CONCENRATOR ETC
Notification No.12/2017-Central Tax (Rate) dated 28th June 2017 exempts services provided by entity registered under Section 12AA of the Income-tax Act, 1961 by way of charitable activities from whole of GST vide entry No. 1 of the notification.
With respect to the Goods, the Specified Relief Material including Oxygen Concentrators can be received by an NGO in India for free distribution without payment of Customs duty, Health Cess and Integrated Tax-IGST at the point of import before custom clearance if the conditions prescribed in Ad Hoc Order No 4/2021 dated 3rd May, 2021 are fulfilled.
Further, import of Oxygen concentrates subject to 12 percent IGST from the earlier rate of 28 percent; while concentrators imported for charity are exempt from the tax vide Notification No 30/2021 dated 1st May, 2021.