Amidst the increasing pollution in the country’s capital Delhi and surrounding areas, air purifiers have no longer become a luxury item but a necessity. People are buying air purifiers to avoid poisonous air, but its high prices and heavy taxes on it have increased the burden on the common man’s pocket. Delhi High Court, showing strictness on this issue, has directed the GST Council to immediately consider reducing or eliminating the 18% tax on air purifiers. However, there has been no official change in the tax slabs yet.
Describing bad air as an ’emergency’ situation, the court said – if the government cannot provide clean air then at least reduce the taxes.
Delhi High Court has described the current situation of pollution as “emergency”. The Court remarked during the hearing that it is the responsibility of the government to provide clean air to the citizens, and if the government is unable to do so, then it should at least reduce the GST rates on appliances like air purifiers to provide relief to the people. The court has directed the GST Council to convene a meeting as soon as possible and consider the option of reducing the tax on air purifiers and HEPA filters or abolishing it completely for some time. The next hearing in this case has been fixed for December 26.
Air purifier is not a medical device but is in the category of ‘other home appliances’, hence customers are paying a huge tax of 18%.
Air purifiers are not considered “life saving” or “medical devices” under current regulations. It is categorized as “Other Electrical/Household Appliances” with 18% tax slab. This is why customers have to pay 18% GST on its purchase. Additionally, if the air purifier is being imported from abroad, it is also subject to basic custom duty (about 7.5%) and social welfare surcharge, which further increases its total price. The petitioners demand that it be considered a medical device and brought in the 5% tax slab.
Parliamentary committee also recommends – it is now a ‘necessary means’ to avoid pollution, consideration should be given sympathetically to reducing the tax to 5% or zero.
Not only the court, but the Parliament’s Environment Standing Committee has also advocated reducing the tax on air purifiers. The committee has recommended that in view of the serious level of pollution, these machines have now become essential for the health of the people, therefore, sympathetic consideration should be given to reducing or zero GST on these and their filters. If it is put in the category of essential commodity or medical device, then the tax on it will be reduced to 5%, which will provide great relief to the general public.
Will purifiers be cheap? Know what effect it will have on your pocket if you are going shopping today.
Despite the court order, the practical situation for customers has not changed yet. Today, if someone buys an air purifier, he will have to pay 18% GST added to the MRP. Until the GST Council takes a formal decision and issues a new notification, the old rates will remain applicable. Concessional rates like 5% or 0% can be applied only after being declared “Essential”. At present, shopkeepers or online platforms are selling at the old rates only, and no tax exemption rule has been implemented yet.
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