Delhi Air Pollution: High Court Asks GST Council To Decide On Lowering, Abolition Of GST On Air Purifiers 'At The Earliest'

The Delhi High Court on Wednesday (December 24) directed the GST Council to convene a meeting and decide the issue of lowering or abolishing of GST on air purifiers at the earliest keeping in mind the prevailing air quality situation in Delhi and nearby areas. 

The court passed the order while hearing a PIL against 18% GST imposed on air purifiers and to declare the same as a medical device. Considering the function performed by air purifiers, the court was of the prima facie view that GST of 5 percent can be provided for air purifiers.

Earlier in the day the court had orally remarked that the authorities must provide exemption from GST on air purifiers, considering the air pollution situation in the national capital as an “emergency.” The matter was adjourned for hearing at 2:30 PM, to enable the counsel appearing for the Union Government to seek instructions.

When the matter was taken up post lunch, the counsel appearing for the Union Government submitted before a division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, "this is a policy decision to be taken for GST council. It comprises of members of all States and Union".

He said that there was a set procedure prescribed. 

Meanwhile Senior Advocate Arvind Nayar representing the petitioner Kapil Madan said, "There is a notification of 2020. For ease of breathing, they can very easily include air purifiers in this notification".

To which the court orally said, "Then we will have to direct ministry of health first and then based on that GST council will have to consider. What we propose to do today is noting your concerns, we will ask nodal officer to place all this before GST council and within which they will take a decision and then they will come back on Monday or day after tomorrow".

The court noted the petitioner's contention that air purifiers qualify as medical device in terms of the notification of February 2020 which has been issued under Sec 3 of Drugs and Cosmetics Act, 1940.

It was stated further that on medical devices, GST being charged is 5 percent whereas it is 18 percent for air purifiers. The petitioner has sought a direction to the respondents to consider charging 5 percent on air purifiers as well having regard to ever worsening air condition in Delhi and nearby areas.

Issuing notice on the petition the court directed:

"Our attention is drawn to a report submitted by parliamentary standing committee (on climate change) submitted to both houses. The standing committee has recommended that the government shall either abolish or lower GST on air purifiers. Having regards to the concerns raised in petition and recommendation of committee, we direct that the issue of lowering or abolishing of GST on air purifiers shall be decided by GST council at earliest"

"We are informed by the counsel for Respondent 2 that GST council is a pan india body, and thus convening the meeting may take some time. We are conscious of the configuration of GST council and we also appreciate that convening meeting may take time. However, taking into consideration the air quality situation in Delhi and nearby areas, it will be appropriate to require the GST council to meet at the earliest," the court added. 

The court further observed that if the council meeting is not possible physically, the same can be convened through VC.

"We are informed that the GST charged on devices enlisted in the February 2020 notification is 5 percent, and considering the functions performed by air purifiers, prima facie, we don't find any reason why GST of 5 percent based on the notification can also not be provided for (air purifiers)," the court said. 

The court listed the matter on December 26 to enable the counsel representing Respondent 2 to seek instructions as to how early the council can meet and take an appropriate decision.

Case Title: Kapil Madan v. Union of India & Ors