NGOs not listed by the FCRA may have to pay taxes on gifts of foreign oxygen devices

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Indian non-profit organizations and individuals who receive oxygen concentrators as gifts from abroad may end up paying taxes on goods and services and tariffs even though the government has offered relief on the devices. , which are rare during the ongoing second Covid-19 wave.

The government has waived the GST and built-in tariffs on oxygen concentrators that are offered from abroad or imported. However, experts said that many companies and nonprofits without FCRA licenses may still be required to pay these taxes.

Foreign contributions law (regulation) is triggered in the case of nonprofit institutions, experts said. Only non-profit entities with a valid FCRA registration can legally receive funds and charitable items from donors outside of India.

“Although the government announced that there would be no GST or tariffs on imported oxygen concentrators, this could still be an issue under the FCRA,” said Amit Maheshwari, tax partner at AKM Global, a tax consultancy firm. “For all non-profit entities that do not have an FCRA license or for-profit entities receiving this equipment as a gift, there might be questions later under FCRA. We hope the government will provide clarification in this regard. ”

Even some people who import oxygen concentrators could face taxes.

“There is no intelligible difference to the different rates when oxygen concentrators are imported by individuals and other statutory bodies / relief agencies. Eligibility for exemption and periodicity should be tested through judicial review, ”said Abhishek A Rastogi, partner at Khaitan, a law firm.

The government first reduced the iGST on oxygen concentrators to 12% from 28% for personal use. This was then reduced to zero following a public outcry.


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