In view of increasing air and water pollution, GST Council can take a big decision. The prices of air and water purifiers may be reduced in the next meeting of the GST Council. The Council may announce reduction in GST on these products. At present, 18 percent GST is levied on water and air purifiers. Which can be reduced to 5 percent. Also, both these products can be kept in the category of essential goods instead of consumer goods. According to industry estimates, due to reduction in GST rate, retail prices may reduce by 10-15 percent, which will make these products cheaper for low income families and they will also be able to get clean water and air. However, there is no information yet about when the GST Council meeting will be held.
Delhi High Court gave instructions
The last meeting of the council was held in September. In which there was no change in the rates of air purifiers. Officials say the issue is being actively considered, but any cuts will require the consent of state finance ministers. Pressure on the council has increased in recent weeks. On December 24, the Delhi High Court directed the government to hold a meeting of the GST Councils virtually at the earliest, even if physically not possible, to consider reducing or eliminating GST on air purifiers, citing the deteriorating air quality in Delhi-NCR. The Center told the court that such a move would “open a can of trouble” but added that the matter “will be considered.”
The government argued
Additional Solicitor General N Venkataraman told the court that “there is a process… we are not saying whether it will be done or not,” and argued that the GST Council meetings have to be held physically and cannot be held through video conferencing. The court intervened after a PIL filed by advocate Kapil Madan. He argued that treating air purifiers as a “luxury” item and imposing 18 percent tax on them is harmful to public health.
Many people including former CM have made demands
Political pressure has also increased. In November, former Delhi chief minister Arvind Kejriwal had urged the central government to abolish GST on both air purifiers and water purifiers. Industry and trade organizations have also submitted a memorandum to the government demanding reduction of the GST rate to 5 percent. Reinforcing these demands, the Parliamentary Standing Committee on Science & Technology, Environment, Forest and Climate Change in its December report recommended that GST on air purifiers and water purifiers and their parts should be reduced or abolished. The committee said citizens should not be penalized for their efforts to ensure clean air and safe drinking water.
