Adv. Gaurav Gupta
B.Com(Hons)-SRCC, FCA, LL.B., ISA(ICAI)
With the increased in COVID cases, the demand for life supporting equipment which provide breathing aid to the patient has increased multifold in recent past. The Government has exempted Basic customs duty on import of COVID-19 vaccines, and the Basic customs duty and health cess on import of medical grade oxygen and other equipment related to providing oxygen to patients, for a period of three months till July 31, 2021. However, the exemption is not given to the IGST on such import. Accordingly, there are apprehensions as to what rate shall be applicable on such portable oxygen concentrators.
Amongst such equipment, one is portable oxygen concentrators (“Product”). The machine is used to provide oxygen to the patients at home or at small clinical facility. It is being seen that the Product is classified under the following headings:
| S.No. | HSN | Description of goods | IGST Rate |
| 1. | 90189019 | Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and sight-testing instruments – Diagnostic instruments and apparatus – Other | 12% |
| 2. | 9019 20 10 | Mechano-therapy appliances; massage apparatus; psychological aptitude-testing apparatus; ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus – Oxygen therapy apparatus | 12% |
| 3. | 98049000 | All dutiable goods imported for personal use | 28% |
| 4. | 8421 39 90 | Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases – Filtering or purifying machinery and apparatus for gases – Others | 18% |
WHO has provided the following classification to oxygen concentrator:
| IV. Oxygen Therapy equipment and pulse oximeters | |||
| Medical ventilators (artificial respiration apparatus) | Provides ventilation by moving breathable air into and out of the lungs. This includes both:
· ventilator machines and · compressible self refilling ventilation bags that are normally supplied with a valve and mask (also known as ‘bag valve (BVM) ventilators). |
9019.20 | 6% |
| Extracorporeal membrane
oxygenation (ECMO) |
Provides prolonged cardiac and respiratory support by removing blood from the person’s body and artificially removing the carbon dioxide and oxygenating red blood cells. | 9019.20 | 6% |
| Continuous Positive Airway
Pressure (CPAP) units |
Positive airway pressure ventilators, which apply mild air pressure on a continuous basis, to keep the airways continuously open in people who are able to breathe spontaneously on their own, but need help keeping their airway unobstructed. | 9019.20 | 6% |
| Bilevel positive airwaypressure (BiPap or BPap)
units |
Similar to CPAP unit, except that
the pressurized air is delivered at two alternating levels with a higher inspiratory positive airway pressure (IPAP) and a lower expiratory positive airway pressure (EPAP). |
9019.20 | 6% |
| Oxygen concentrators (See “Section VIII. Other” for oxygen generating plants and “Section VI. Other Medical Consumables for oxygen | Devices designed to concentrate oxygen from ambient air and deliver the concentrated oxygen, typically through an attached nasal cannula (or prongs), to a patient requiring oxygen therapy.
These differ from oxygen plant in that they supply oxygen directly to patients according to their specific needs. |
9019.20 | 6% |
| Oxygen humidifiers for
oxygen therapy applications |
Medical devices that can be integrated into oxygen delivery systems to humidify supplemental oxygen when it is delivered at higher than standard flow rates, or the method of oxygen delivery bypasses the nose (e.g., through nasopharyngeal catheters). | 9019.20 | 6% |
| Oxygen delivery devices to supply oxygen from the device to the patient | Oxygen masks
Venturi m asks; Oxygen tents ; Oxygen head boxes ; and Similar oxygen delivery devices |
9019.20 | 6% |
| Oxygen delivery devices to supply oxygen from the device to the patient | Nasal prongs (nasal cannulae): nasal cannulae consist of plastic tubes that end in two short tapered prongs that are placed in the nostrils for delivering oxygen. | 9018.39 | 6% |
| Oxygen delivery devices to supply oxygen from the device to the patient | Nasal catheter : a thin, flexible tube that is passed into the nose and ends with its tip in the nasal cavity for delivering oxygen. | 9018.39 | 6% |
| Flowmeter, Thorpe tube for oxygen 0-15L/min | The Thorpe tube flowmeter is composed of inlet and outlet ports, a regulator, a valve and a clear tapered measuring tube. It is suitable for connection with various medical gas sources, such as centralized system, cylinders, concentrators or compressors. Standard (absolute, non-compensated) and pressure-compensated flowmeter versions, suitable for specific flow ranges. | 9026.80 | 9% |
| Flow splitters | A device intended to distribute medical oxygen from a single source to multiple independent outlets. | 9019.20 | 6% |
| Pulse oximeters | Devices for measuring the oxygen saturation of haemoglobin in arterial blood (SpO2). They use the principle of differential light absorption to determine SpO2 when the sensor (also called a probe) is applied to an area of the body (e.g. a finger, toe or earlobe). | 9018 .19 | 6% |
To see the detailed list of classification of goods related to treatment and prevention of COVID, by WHO, please click here
Author’s view on Classification:
In agreement with WHO classification which provides detailed description of the product – Oxygen Concentrators, such product should be classified under 9019.20 and should be exigible at the rate of 12% IGST at the time of import. If the same are imported for personal use under HSN 9804 (unless gifted), rate of 28% shall be applicable. If imported for charitable purpose and not for personal use, HSN 9019.20 shall apply. In case of gift, please see the paragraph below.
IGST on imports as gifts is not applicable when received for personal use
Recently Directorate General of Foreign Trade vide Notification No. 4/2015-20 dated April 30, 2021 ahs amended Para 2.25 of Foreign Trade Policy allowing import of oxygen concentrators which are sent from abroad to Indian person as gift. Thus, the government has allowed the import of oxygen concentrators as gifts for personal use only freely without payment of duty. Please note the IGST is not free on imports in case the oxygen Concentrator is purchased from outside India or when the same is received as gift for reasons other than personal use. It is also advisable for persons not to engage declaring the same as import for personal use and sell such instruments later. Also, persons may be tempted to bring this article as personal use in multiple consignments. They shall most likely will find themselves getting demand from Customs later. So, be true, the relief is genuine for genuine users.
