The Delhi High Court on Thursday directed that the issue of reducing or rationalising Goods and Services Tax (GST) on air purifiers be placed before the GST Council for consideration at the earliest, in view of the deteriorating air quality in Delhi and the NCR.
The direction came in a Public Interest Litigation filed by Advocate Kapil Madan, which was argued by Senior Advocate Arvind Nayar before a Bench headed by the Chief Justice of the Delhi High Court. The petitioner contended that air purifiers perform a preventive and health-protective function and should be treated as “medical devices”, attracting a concessional GST rate of 5% instead of the existing 18%.
During the hearing, the Court was informed that decisions on GST rates are a matter of policy within the exclusive domain of the GST Council, a constitutional body comprising representatives of the Union and States. The respondents submitted that recommendations of a Parliamentary Standing Committee on Science and Technology, Environment, Forests and Climate Change suggesting reduction or abolition of GST on air purifiers were already under consideration.
It was also brought to attention of the Court regarding Notification dated 11 February 2020 issued under the Drugs and Cosmetics Act, 1940, which expands the definition of “medical devices” to include instruments and appliances intended for diagnosis, prevention, monitoring or alleviation of disease, as well as for supporting or sustaining life. The Court recorded the submission that air purifiers, by mitigating respiratory health risks during severe air pollution episodes, may be covered under the said notification.
Taking note of the submissions and the recommendations of the Parliamentary Standing Committee, the Court observed that while it was conscious of the statutory structure and functioning of the GST Council, the prevailing air pollution crisis warranted urgent consideration of the issue. The Bench accordingly directed that the matter be placed before the GST Council at the earliest and sought instructions on the timeline for convening a meeting to consider the issue.
The matter has been listed for further hearing on January 26 to enable the respondents to apprise the Court of the steps taken pursuant to its directions.
Appearances:
For the Petitioners: Sr. Adv Arvind Nayar and Advocate Kapil Madan.
Adv Gurmukh Singh Arora and Rahul Matharu has filed this PIL.