Kerala HC Exempts GST Payment On Imported Medicine For 3-Yr-Old Suffering From Life-Threatening Disease
The Kerala High Court allowed a mother of a 3-year-old suffering from a life-threatening disease to not pay GST on an imported medicine called 'Risdiplam.'
The mother had sought relief against the collection of Integrated Goods and Services Tax (IGST) on the purchase of a life-saving drug 'Risdiplam,' for the treatment of her son who was suffering from a life-threatening disease called Spinal Muscular Atrophy (SMA). the drug was imported from a company in Switzerland.
A Single Bench of Justice Gopinath P. observed, “It is clear from the terms of Ext.P.8 Circular r/w Ext.P.7 minutes of the GST Council and the provisions of Article 279A(4) of the Constitution of India that the Union Finance Minister is competent to consider the grant of exemption from IGST for the import of medicines for individuals who are suffering from life-threatening diseases. The case of the petitioner appears to be eminently qualified for the grant of such exemption”
Advocate T. Sanjay represented the petitioner.
The mother had submitted that it was open to the Goods and Services Tax (GST) Council to make recommendations regarding the goods and services that may be exempted from the levy of GST under Article 279A(4) of the Constitution of India. She also argued that the Union Finance Minister was competent to grant ad hoc exemption from IGST payable on imported goods.
The price of the drug was Rs.6.07 Lakh per bottle including 12% GST. The mother contended that GST on the import of medicines for the treatment of individuals suffering from life-threatening diseases should be exempted.
The Court exercised its jurisdiction under Article 226 of the Constitution and directed that “the petitioner will be entitled to purchase the drug Risdiplam (brand name Evrysdi) from the additional 6 th respondent without payment of GST.”
The Medicine company was simultaneously permitted to issue a bill of supply as contemplated by Section 31(3)(c) of the Central Goods & Services Tax Act / State Goods & Services Tax Act.
"This arrangement shall be provisional, and it will be open to the additional 6 th respondent to apply to this Court for further modifications/directions regarding any difficulty it may face in supplying the goods as directed," the Court clarified.
Accordingly, the High Court partly allowed the petition.
Cause Title: Amrutha S. v. Union Of India & Ors.
Appearance:
Petitioner: Advocates T. Sanjay, Sanil Kumar G. and Shabna T.K.
