Page 40 - GSTL_23rd April 2020_Vol 35_Part 4

news
news

desk
desk

CBIC extends deadline for undertakings by traders
The Central Board of Indirect Taxes and Customs (CBIC) has extended
the deadline till May 15 for allowing importers and exporters to submit under-
takings instead of bonds for quick movement of goods amid the lockdown. The
Board decided to extend the deadline keeping into consideration the extended
period of nationwide lockdown till May 3, and that it may take time for things to
normalise later as well. Proper bonds will be required by May 30.
[Source : The Economic Times, New Delhi, dated 22-4-2020]

GST rates & the medical devices industry
The Covid-19 crisis has highlighted the need to strengthen our public
health system, especially at the primary level. In addition, we need to create
strong domestic manufacturing capacities in industries such as pharmaceuticals
(especially APIs or active pharmaceutical ingredients going into important for-
mulations) and in the medical devices segment (largely falling under Chapter 90
of the International Trade Classification).
The medical devices industry is important for the country for it plays to
our strengths. Frugal engineering and interesting innovations have happened in
India which make it possible to manufacture medical devices here at a fraction of
the cost of imported equipment. The Covid-19 crisis has also highlighted the
point that domestic capacities are not adequate to meet a crisis demand.
How do we then balance the twin objectives of meeting domestic de-
mand and ensuring that the domestic medical industry is not swamped by im-
ports? Here, policymakers must make the important distinction between short-
term responses and a medium/long-term strategy.
In the short run, we need to bring down the cost of equipment for emer-
gency supplies that are pouring in. Most of this is imported on a Government-to-
Government (G2G) basis like the recent import of testing kits from China. For
this, the Government has already brought down the Customs duty rate and
waived the levy of health cess. This exemption has been given for a limited peri-
od, up to September, 2020. This will also help the private importers who seek to
deploy their CSR funds for the import and distribution of medical equipment.
The Customs duty reduction is temporary and correctly so.

GST LAW TIMES  23rd April 2020  160