Entire world is is grappled by COVID-19 pandemic and there are no signals yet for its impact being reduced. Lets hope we get over it soon.
As is said that in this world only two things are certain , one being death and other taxes. Accordingly despite the COVID-19 outbreak the goods / devices related to prevention / cure of COVID-19 continued to be subjected to GST. Rather a big controversy in regard to GST rate applicable on hand sanitisers (alcohol based) was erupted i.e. whether tax rate of 12% or 18% is applicable and later it was concluded by Government that rate applicable will be 18%.
However the Central Government was kind enough to grant exemption from Basic Custom Duty and Health Cess on import of certain items till 30th September,2020.
GST Rates and HSN Codes of COVID-19 goods
| Description of Goods | HSN Code | Rate of GST* |
| Medical grade oxygen used in oxygen cylinders. | 2804 | 12% |
| Hand Wash | 3401 | 18% |
| Disinfectants and hand sanitizers. | 3808 | 18% |
| COVID-19 diagnostic kits and reagents. | 3822 | 12% |
| PPE Kit (Protective garments and sheets made of plastic). | 3926 | 18% |
| Face Shield | 3926 | 18% |
| Rubber gloves used for surgery or medical examination. | 4015 | 12% |
| Gloves made of clothing fibres, protective garments and sheets made of fabric, etc. | 4015 | 18% |
| Webs/Masks of cellulose fibres; Cellulose handkerchiefs; Cleansing tissues, towels, napkins, etc. | 4818 | 18% |
| Face Mask (Cloth) | 6307 | 5% |
| Hair nets made of any material. | 6505 | 18% |
| Protective spectacles | 9004 | 12% |
| Mechano-therapy appliances, including ventilators and other therapeutic respiration apparatus. | 9019 | 12% |
| Breathing appliances and masks with mechanical parts and replaceable filters. | 9020 | 12% |
| Infrared thermometers, pyrometers, barometers, psychrometers and hygrometers. | 9025 | 18% |
Note: The above list is illustrative and not exhaustive in nature hence some COVID-19 medical supplies may not have been covered here.
COVID-19 Medical Supplies Exempt from Customs Duty and Health Cess
80% of medical device / equipment supplies in India are imported from other countries and are subjected to basic custom duty and health cess at applicable rates. The total duty varies from 11% to 22% depending upon the product.
The Central Government, however considering the grim situation due to COVID-19 has exempted, a number of such imported devices / equipments / goods from basic customs duty and health cess the details of which are given below:
| Chapter/ Heading/ Sub-heading/ Tariff Item | Description |
| 30, 38 or any chapter | COVID-19 testing kits |
| 62 or any chapter | Personal Protection Equipment (PPE) |
| 63 or any chapter | Face and surgical masks |
| 9018/ 9019 | Ventilators, i.e., artificial respiratory and therapeutic respiratory apparatus. |
| Any chapter | Items used in the manufacture of the above-listed items, provided the importer follows “Import of Goods at Concessional Rate of Duty” Rules, 2017 |
Note: The Customs duty exemption for the above listed goods is valid till 30th September, 2020.
***
[rainbow]Don’t miss the next GST Update / Article / Judicial pronouncement[/rainbow]
Subscribe to our newsletter from FREE to stay updated on GST Law
Resolve your GST queries from national level experts on GST free of cost.
TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
