Haryana first state to reimburse GST on Covid-related donations

Haryana on Tuesday became the first state in the country to allow reimbursement of goods and services tax (GST) paid on Covid-related donations made to the state and state-run facilities. This will be applicable till June 30. The move is aimed at encouraging efforts by corporations, non-government organisations (NGOs) and individuals and facilitating donations of items such as oxygen concentrators, Covid-19 vaccines, Remdesivir injections, etc. as the country battles the intense second Covid-19 wave. Haryana will reimburse GST already paid on such Covid-19 related items, subject to conditions.
 
“Haryana is facing an acute shortage of liquid medical oxygen and other health equipment such as ventilator, medicines etc… in order to encourage efforts by corporates, NGOs and individuals coming forward to help the state government … by way of donations, it is necessary in the public interest to facilitate donation of such items,” the state government said in a notification on Tuesday.

 
Reimbursement will be available only in cases where Covid-19 related material is donated free of cost to the government of Haryana, state-run hospitals, or any hospitals or institutions permitted by the state government to receive such material through Haryana’s Health and Family Welfare department. Besides, the health and family welfare department of the state will issue a certificate of such donations, which will need to be submitted by the donors to the Excise and Taxation department of the state to claim refunds.“The excise and taxation department shall, after verifying the amount of GST paid, sanction the reimbursement of GST,” the notification said. The 15 items eligible for reimbursement include oxygen concentrator, oxygen filling systems, oxygen storage tanks, oxygen generators, vaccine, Remdesivir, ventilators, etc.

 

Harpreet Singh, partner at KPMG, said several countries across the globe are providing GST/ VAT exemptions and benefits on free Covid-19 material. “It is good to see, India is also slowly but surely moving in the same direction…Many corporates are supplying free Covid-19 related material to their employees and their families. GST reimbursement of such free supplies to employees, apart from the free supplies to government, is likely to provide more respite to the industry,” added Singh.