PIL seeking to reduce GST on air purifiers from 18% to 5%
Why in news?
The Indian government opposed a public interest litigation (PIL) in the Delhi High Court seeking to reduce GST on air purifiers from 18% to 5% by classifying them as medical devices, amid worsening air pollution in Delhi-NCR.​
Background of the Case
- The Plea: Filed in the Delhi High Court, the petition sought to reduce GST on air purifiers to make them more affordable amid worsening pollution in Delhi-NCR.
- Current GST Rate: Air purifiers are taxed at 18% GST. The plea wanted them reclassified as “medical devices,” which would lower the rate to 5%.
- Court’s Position: The HC asked the government to either provide clean air or reduce GST on purifiers, giving the Centre 48 hours to respond.
Government’s Arguments
- Jurisdiction Issue: The Centre said the GST Council cannot decide if air purifiers are medical devices. That classification lies with the Health Ministry, which was not part of the case.
- Process Complexity: GST rate changes require deliberation by all 30 states and Union Territories in the GST Council. It cannot be rushed or bypassed through a writ petition.
- Pandora’s Box Concern: If air purifiers are reclassified, many other products could demand similar treatment, leading to chaos in tax administration.
- Calculated Plea: The government described the petition as filed in a “calculated manner” to pressure the Council.
Risks & Implications
- For Consumers: Keeping GST at 18% makes air purifiers less affordable, especially for lower-income households.
- For Policy: A reduction could set precedent for other goods to seek medical classification, complicating GST governance.
- For Governance: Highlights tension between urgent public health needs and rigid tax frameworks.
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