## Policy Analysis Report: Exemption from Integrated Tax on Imported Goods for COVID Relief (Notification No. 32/2021-Customs)
**1. Executive Summary:**
This report analyzes Notification No. 32/2021-Customs, issued by the Ministry of Finance, Department of Revenue, on May 31, 2021. This notification exempts specific imported goods from the integrated tax (IGST) leviable under the Customs Tariff Act, 1975 and the Integrated Goods and Services Tax Act, 2017. The exemption applies to goods intended for free distribution as COVID relief and is subject to specific conditions regarding donation to government entities or relief agencies recommended by state authorities. This notification will remain in force up to and inclusive of August 31, 2021, and is also applicable to goods pending clearance on the date of coming into force of the notification.
**2. Introduction:**
This report aims to provide a detailed analysis of Notification No. 32/2021-Customs, focusing on its core objective, key provisions, affected stakeholders, and likely impact, based solely on the information provided in the policy text.
**3. Policy Overview:**
* **Core Objective(s):** The primary objective is to exempt specified imported goods from integrated tax (IGST) to facilitate the free distribution of COVID relief supplies. This is explicitly stated as being "necessary in the public interest."
**4. Background and Rationale:**
* **Rationale:** The notification implies an urgent need for COVID relief supplies within India. By removing the burden of integrated tax on specific imported goods donated for this purpose, the government aims to streamline and incentivize the import and distribution of essential resources to combat the pandemic.
**5. Key Provisions / Changes:**
This is a **New Policy** that introduces a specific exemption, not an amendment.
* **Exemption:** The notification exempts goods specified in the Appendix (referencing other notifications) from the whole of the integrated tax leviable under Section 3(7) of the Customs Tariff Act, read with Section 5 of the Integrated Goods and Services Tax Act.
* **Condition 1 (Donation):** The imported goods must be donated to the Central Government, State Government, or to a relief agency on the recommendation of a State authority for free distribution.
* **Condition 2 (Certificate):** Before clearance, the importer must submit a certificate from the Central Government or a nodal authority appointed by the State Government confirming that the goods are meant for free distribution for COVID relief. This certification must align with Ad hoc Exemption Order No. 4/2021-Customs, dated the 3rd May, 2021.
* **Condition 3 (Proof of Receipt/Distribution):** Within six months (extendable to nine) from the date of importation, the importer must provide a certificate from the Central or State Government confirming receipt of the goods for free distribution, or a statement certified by the nodal authority detailing the free distribution of goods donated to a relief agency.
* **Validity:** The notification is valid until August 31, 2021, and applies to goods pending clearance on May 31, 2021.
**6. Target Audience and Stakeholders:**
* **Importers:** Companies and organizations importing goods listed in the Appendix notifications for COVID relief purposes.
* **Central Government:** As a recipient of donated goods and issuer of certificates.
* **State Governments:** As recipients of donated goods, appointers of nodal authorities, and issuers of certificates.
* **Relief Agencies:** Entities receiving donated goods for free distribution, recommended by State nodal authorities.
* **Deputy or Assistant Commissioners of Customs:** Responsible for verifying documentation and ensuring compliance.
* **Citizens/Residents of India:** Intended beneficiaries of the free distribution of COVID relief supplies.
**7. Implementation Aspects (Inferred):**
* **Responsible Agencies:** The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance is ultimately responsible for administering and overseeing the policy. Deputy or Assistant Commissioners of Customs at ports of import are responsible for the day-to-day implementation. State governments and their appointed nodal authorities play a crucial role in recommending relief agencies and certifying distribution.
* **Timelines:** Importers have a six-month window (extendable to nine months) from the date of importation to provide proof of receipt or distribution of goods. The notification itself is valid until August 31, 2021.
* **Procedures:** Importers must obtain and submit specific certificates *before* clearing the goods. They must also provide proof of receipt/distribution *after* importation within the specified timeframe. The process involves coordination with Central and State government authorities.
**8. Expected Outcomes / Impact of Changes:**
* The intended outcome is to reduce the cost of importing essential COVID relief supplies, thereby encouraging donations and facilitating their rapid distribution to those in need. This should lead to increased availability of critical resources and improved COVID relief efforts. By removing the IGST burden, the notification aims to accelerate the customs clearance process and ensure timely delivery of aid. The short-term validity suggests that the government intends to reassess the situation and potentially extend or modify the policy based on evolving needs.
**9. Conclusion:**
Notification No. 32/2021-Customs provides a temporary exemption from integrated tax on imported goods intended for COVID relief. This measure aims to alleviate the financial burden on importers and facilitate the rapid distribution of essential supplies. Its effectiveness hinges on efficient coordination between importers, customs officials, and Central and State government authorities. The notification plays a crucial role in supporting COVID relief efforts and mitigating the impact of the pandemic on vulnerable populations.
Key Entities Referenced
Customs Act, 1962: A legal act referred to in the notification, specifically section 25, subsection 1.
Customs Tariff Act, 1975: A legal act referred to in the notification, specifically section 3, subsections 12 and 7 and the First Schedule.
Central Government: The governing body that issued the notification and to whom goods can be donated.
India: The country into which goods are imported, as specified in the notification.
Integrated Goods and Services Tax Act, 2017: A legal act referred to in the notification, specifically section 5.
New Delhi: Location where the notification was issued.
Ministry of Finance: The ministry that oversees the Department of Revenue, which issued the notification.
Department of Revenue: The department under the Ministry of Finance that issued the notification.
State Government: A governmental body to whom goods can be donated, and which may appoint a nodal authority.
Ad hoc Exemption Order No. 42021Customs, dated the 3rd May, 2021: An exemption order related to customs, relevant to the notification.
Rajeev Ranjan: The Under Secretary who signed the notification.
COVID: Relief efforts for this disease pandemic is mentioned.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एxलx.x-GअID.-E3xx1x0 52021-227275
CG-DL-E-31052021-227275
असाधारण
EXTRAORDINARY
भाग II—खण्ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 289] नई ददल्ली, सोमिार, मई 31, 2021/ज्य ष्े ि 10, 1943
No. 289] NEW DELHI, MONDAY, MAY 31, 2021/JYAISHTHA 10, 1943
जित्त मत्रं ालय
(राजस्ट्ि जिभाग)
अजधसचू ना
नई ददल्ली, 31 मई 2021
स.ं 32/2021-सीमािल्ु क
सा.का.जन. 355(अ).—सीमा िुल्क अजधजनयम, 1962 (1962 का 52) की धारा 25 की उप-धारा (1) और सीमा
िुल्क टैररफ अजधजनयम 1975 (1975 का 51) (एतजममन पमच ात् जजस े उक् त सीमािुल् क टैररफ अजधजनयम से संदर्भभत
दकया गया ह)ै की धारा 3 की उप-धारा (12) के द्वारा प्रदत्त िजियों का प्रयोग करते हुए, आििस्ट्त होने पर दक ऐसा करना
लोक जहत म ें आिमयक ह,ै केंद्रीय सरकार एतद्द्वारा ऐसे माल, जजसका जििरण नीच े पररजिष्ट में सूचीबद्ध अजधजनयमों में
जिजनर्ददष्ट ह ै और जो उक् त सीमा िुल्क टैररफ अजधजनयम की प्रथम अनुसूची के अध्याय, िीर्ष, उप-िीर् ष अथिा टैररफ मद के
अंतगषत आते ह ैं जो उि अजधजनयमों में जिजनर्ददष्ट ह,ैं पर एकीकृत माल और सेिाकर अजधजनयम, 2017 (2017 का 13) की
धारा 5 के साथ परित उि सीमा िुल्क टैररफ अजधजनयम की धारा 3 की उप-धारा (7) के अंतगषत उद्ग्रहणीय संपूणष एकीकृत
कर से, जब िह भारत में आयाजतत हो, इस अजधसूचना के उपबंध में जिजनर्ददष्ट ितों के अधीन, छूट प्रदान करती ह।ै
2. यह अजधसूचना 31 अगस्ट्त, 2021 तक, जजसमे यह तारीख भी िाजमल ह,ै लागू रहगे ी और ऐस े माल पर भी लागू
होगी जजसकी जनकासी इस आदिे के प्रिृत्त होने की तारीख पर लंजबत ह।ै
2909 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
पररजिष्ट
क्र. स.ं अजधसचू ना
अजधसूचना संख्या 27/2021-सीमा िुल्क ददनांक 20 फरिरी, 2021
1.
[सा.का.जन. 284(अ), ददनांक 20 फरिरी, 2021]
अजधसूचना संख्या 28/2021-सीमा िुल्क ददनांक 24 फरिरी, 2021
2.
[सा.का.जन. 286(अ), ददनांक 24 फरिरी, 2021]
उपबधं
ित षसं. ित ष
आयाजतत माल केंद्रीय सरकार या राज्य सरकार, अथिा राज्य सरकार प्राजधकारी की जसफाररि पर दकसी राहत
1. संस्ट्था, इकाई, अथिा सांजिददक जनकाय (एतजममन पश्ा्त जजसे राहत संस्ट्था से संदर्भभत दकया गया ह)ै को,
जनिुल्क जितरण हते ु दान दकया जायेगा |
आयातकताष माल की जनकासी के पूिष, केंद्रीय सरकार अथिा नोडल प्राजधकारी [ जजनम ें िह जजन्ह ें तदथष छूट
आदिे संख्या 4/2021-सीमािुल्क ददनांक 3 मई, 2021 {सा.का.जन. 316 (अ), ददनांक 3 मई, 2021} के उद्देमय
हते ु राज्य सरकार द्वारा जनयुि दकया गया था, िाजमल ह ैं ], जैसा पररजस्ट्थजत के अनुरूप हो, से एक प्रमाण-पत्र
2.
सीमा िुल्क उपायुि या सहायक आयुि के समक्ष प्रस्ट्तुत करता ह,ै दक आयाजतत माल केंद्रीय सरकार, राज्य
सरकार अथिा उि नोडल प्राजधकारी द्वारा प्रमाण-पात्र में जजसकी जसफाररि की गयी हो, उस राहत संस्ट्था,
द्वारा कोजिड राहत के जलए जनिुल्क जितरण हते ु ह ै|
आयातकताष आयत के पत्तन पर, सीमा िुल्क उपायुि या सहायक आयुि के समक्ष, आयात की तारीख के छह
माह, अथिा अजधकतम नौ माह तक की जिस्ट्ताररत अिजध जजसे उि सीमा िुल्क उपायुि या सहायक आयुि
अनुज्ञात करे, के भीतर जनम्नजलजखत प्रस्ट्तुत करता ह,ै यथा-
3. (क) केंद्रीय सरकार अथिा राज्य सरकार, जैसा पररजस्ट्थजत के अनुरूप हो, से एक प्रमाण-पात्र दक आयाजतत माल
उनके द्वारा जनिुल्क जितरण हते ु प्राप्त कर जलया गया ह;ै अथिा
(ख) यदद आयाजतत माल नोडल प्राजधकारी दक जसफाररि पर राहत संस्ट्था को दान दकया गया हो, तो जनिुल्क
जितररत माल का जििरण, जो दक राज्य सरकार के उि नोडल प्राजधकारी द्वारा सम्यक रूप से प्रमाजणत हो |
[फा. सं. सीबीआईसी-190354/37/2021-टीओ(टीआरयू-I)-सीबीईसी(पीटी-I)]
राजीि रंजन, अिर सजचि
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 31st May, 2021
No. 32/2021-Customs
G.S.R. 355(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of
1975) (hereinafter referred to as the Customs Tariff Act), the Central Government, on being satisfied that it
is necessary in the public interest so to do, hereby exempts the goods of the description as specified in the
notifications listed in the Appendix below, falling within the Chapter, heading, sub–heading or tariff item
of the First Schedule to the Customs Tariff Act as specified in the said notifications, when imported into
India, from the whole of the integrated tax leviable thereon under sub-section (7) of section 3 of the said
Customs Tariff Act, read with section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017),
subject to the conditions specified in the Annexure to this notification.[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 3
2. This notification shall remain in force upto and inclusive of the 31st day of August, 2021 and shall
also apply to goods which are pending for clearance on the date of coming into force of this notification.
APPENDIX
S. No. Notification
Notification No. 27/2021-Customs, dated the 20th April, 2021
1.
[G.S.R. 284(E), dated the 20th April, 2021]
Notification No. 28/2021-Customs, dated the 24th April, 2021
2.
[G.S.R. 286(E), dated the 24th April, 2021]
ANNEXURE
Condition
Condition
No.
The imported goods are donated to the Central Government or State Government or, on
1. recommendation of State authority, to any relief agency, entity or statutory body (hereinafter
referred as ―relief agency‖) for free distribution.
Before clearance of the said goods, the importer submits to the Deputy or the Assistant
Commissioner of Customs, a certificate from the Central Government, or a nodal authority
[including as appointed by a State Government for the purposes of Ad hoc Exemption Order
2. No. 4/2021-Customs, dated the 3rd May, 2021 {G.S.R. 316(E), dated the 3rd May, 2021}], that
the imported goods are meant for free distribution for COVID relief, as the case may be, by
the Central Government, State Government, or a relief agency as recommended by the said
nodal authority in such certificate.
The importer produces before the Deputy or the Assistant Commissioner of Customs at the
port of import, within a period of six months from the date of importation, or within such
extended period not exceeding nine months from the said date as that Deputy or Assistant
Commissioner of Customs may allow,-
3. (a) a certificate from the Central Government or State government, as the case may be, that
the imported goods were received by them for free distribution; or
(b) in case the imported goods are donated to any relief agency on the recommendation of the
nodal authority, a statement containing details of the said goods distributed free of cost,
duly certified by the said nodal authority of the State Government.
[F. No. CBIC-190354/37/2021-TO(TRU-I)-CBEC(Pt-I)]
RAJEEV RANJAN, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.