Covid: Govt exempts basic customs duty on imports of test kit raw materials
The government has exempted basic customs duty on imports of specified API/ excipients for Amphotericin B and raw materials for manufacturing Covid test kits as the number of Covid-19 cases slowly increases amidst concerns of a third wave of the pandemic.
In a notification dated July 12, the finance ministry said the basic customs duty exemption on raw materials for manufacturing Covid test kits would be till September 30, 2021. The exemption on specified API (active pharmaceutical ingredients)/excipients for Amphotericin B would be valid till August 31.
Fear of third wave
Mahesh Jaising, partner, Deloitte India, said it was not surprising that the government has exempted the customs duty on raw materials for Covid testing kits, given the fact that a third-wave was likely to hit the country soon.
Covid test kits attract 5 per cent GST rate (till September 30) and this exemption will further reduce the cost for the manufacturers and, therefore, the general public.