Why Centre is opposing GST cut on air purifiers despite severe air pollution in Delhi | Explained
The Centre has opposed the Delhi High Court's directive to reduce GST on air purifiers amid worsening air pollution in the national capital, warning that such a move without due process could open a "Pandora's box." The court has asked the government to file a detailed response and questioned why tax relief cannot be provided during a public health emergency.
New Delhi: The Centre on Friday opposed the Delhi High Court’s order to reduce GST rates on air purifiers amid worsening air pollution in Delhi and its surrounding areas. The government argued that slashing GST without following the prescribed procedure could open a "Pandora’s box”.
A bench comprising Justices Vikas Mahajan and Vinod Kumar directed the Centre to file a comprehensive response to the petition within 10 days and listed the matter for further hearing on January 9. Additional Solicitor General (ASG) N. Venkataraman sought time to submit a detailed reply, stating that the classification of air purifiers as medical devices falls under the jurisdiction of the Ministry of Health, not the GST Council.
Is the petition a "calculated move"
The Centre submitted that reducing the GST rate from 18 per cent to 5 per cent could lead to chaos, as tax rates are determined after extensive deliberations involving stakeholders, licensing, and regulatory considerations. The ASG argued that such decisions cannot be made through a writ petition.
Venkataraman also informed the court that GST Council meetings should be held physically rather than through video conferencing. The court observed that the principle of separation of powers is fundamental and that recommendations of a parliamentary standing committee require a legislative process before implementation. The ASG further criticised the petition, claiming it appeared to be a "calculated move”.
‘Either provide fresh air or reduce GST’
On Thursday, the court presented the government with a choice: either ensure access to fresh air or reduce GST on air purifiers. A division bench comprising Chief Justice D.K. Upadhyaya and Justice Tushar Rao Gedela said that reducing taxes was the "minimum” the government could do during a public health emergency.
The development comes at a time when the national capital is grappling with a severe health crisis due to hazardous air quality. The court pointed out that air purifiers cost between Rs10,000 and Rs15,000 and questioned why taxes could not be reduced to make them affordable for poorer sections of society.