'Untenable': Govt Responds As Plea In Delhi HC Seeks GST On Air Purifiers Slashed To 5%

Amid a rapidly deteriorating AQI in Delhi, the Central Government called a plea in the Delhi High Court seeking tax relief on air purifiers from 18% to 5% as "untenable" on Friday.

The petition filed by advocate Kapil Madan maintained that air purifiers are being taxed under the wrong category, something which can be made clear even after a bare reading of the relevant notifications — i.e., Schedule I, which attracts the 5% GST.

Additional Solicitor General N Venkataraman, appearing for the government, argued that the plea which bumps down tax rate on air purifiers to 5% to make them more affordable for underprivileged families, is not defendable because the machines need to be classified as 'medical devices'; something which is beyond the GST council's jurisdiction.

Further, he said rates are applied by the Goods and Services Tax Council after a process involving deliberation by stakeholders, licensing, and regulation, and this cannot be 'scuttled' through a writ petition.

The ASG underlined that slashing rates on this one device would open up a pandora's box.

The Centre's arguments come after it was offered a choice by the Delhi High Court on Thursday — to either "provide fresh air or reduce GST on air purifiers."

A division bench of the HC comprising of Justice DK Upadhyaya and Justice Tushar Rao Gedela said that in the middle of a "health emergency" a GST rate cut on air purifiers was the "minimum" the government should do.

The bench asked why an air purifier which costs between Rs 10,000 and Rs 15,000 could not be made cheaper for poor families in an environment which is hazardous to their health.

However, Venkataraman offered a caveat stating that the government is yet to come to a final decision. He added that a Parliamentary Standing Committee recommendation on the issue is under consideration.

The smog chokehold has only intensified in Delhi over the past few weeks with the air quality index stagnant in the 'hazardous' category.

According to a data by Global Burden of Disease or (GBD) data, the polluted air has been linked to 15% of all deaths in 2023. Despite this, the Centre is yet to recognise a direct link of the air quality to the fatalities.

Air purifiers have thus become a necessity in most of the Delhi homes to combat the problem of pollution.