Circular of MoF in 2014 Allows ad hoc Exemption of GST on Imported Goods, to be evaluated on a case-by-case basis, specifically for GST payable on imported medicines aimed at treating individuals grappling with life-threatening illnesses
In a recent development, the Kerala High Court has made a significant ruling, allowing GST exemption to a mother of a three-year-old boy afflicted with Spinal Muscular Atrophy (SMA), to procure Risdiplam, an imported drug crucial for treating the rare disease, without the burden of a 12% GST.
The decision came in response to a writ petition filed by Amrita S. from Alappuzha, whose son relies on Risdiplam, the sole available medicine for this life-threatening genetic condition, imported from Switzerland. Amrita had been sourcing the medication from a reputable drug distribution company in Mumbai.
During the hearing, T. Sanjay, representing the petitioner, emphasized the authority of the Union Finance Minister to grant ad hoc exemptions from GST on imported goods, as outlined in a 2014 circular. The circular allows for exemptions to be evaluated on a case-by-case basis, specifically for GST payable on imported medicines aimed at treating individuals grappling with life-threatening illnesses. The cost of Risdiplam, after factoring in the 12% GST, amounts to approximately ₹6.07 lakh per bottle.
This ruling stands as a beacon of hope for families battling rare diseases, ensuring accessibility to vital medications without the additional financial strain of GST. The High Court’s decision underscores the compassionate approach needed in addressing healthcare challenges faced by individuals and families across the country.
Also Read: Attention: Deadline to opt for GST Composition Scheme for FY 2024-25 is 31 March 2024
Read More