GST showdown: Delhi HC questions govt's stance on air purifier tax cut

New Delhi (The Uttam Hindu) : The Delhi High Court on Friday sought a detailed response from the central government on a petition seeking a reduction in the Goods and Services Tax (GST) on air purifiers. The Delhi High Court directed the central government to file its response within 10 days. The next hearing in the case will be on January 9th.

The Central government on Friday told the Delhi High Court that any meeting of the Goods and Services Tax (GST) Council to decide on reducing or abolishing GST on air purifiers can be held only in-person and not through video conferencing.

A vacation bench of Justices Vikas Mahajan and Vinod Kumar granted the central government 10 days to file its counter-affidavit. Additional Solicitor General (ASG) N. Venkataraman, appearing for the central government, had sought time to file a detailed response to a public interest litigation (PIL) seeking to declare air purifiers as medical devices.

Justice Mahajan's bench said in its order, "N. Venkataraman, appearing for the Central Government, stated that if the GST Council meeting is to be held, it can only be held face-to-face. Meetings cannot be held through video conferencing." He further stated that a detailed counter-affidavit needs to be filed and allowed the petitioner to file a reply thereafter. During the hearing, Venkataraman raised serious objections to the validity of the PIL filed by advocate Kapil Madan, arguing that the petition was biased and had been filed without making the Union Health Ministry a party despite seeking directions affecting public health policy.

A central government law officer said, "We had an emergency meeting yesterday. We are concerned about this PIL. We don't know who is behind this petition. This isn't a PIL. The health department isn't even a party." He argued, "All states and union territories have to agree. The finance minister is a member. If there's going to be a vote on something, it can only be done face-to-face." N. Venkataraman further said that directing a reduction in GST without following the prescribed procedure could open a "Pandora's box."

"The Parliamentary Committee has made some recommendations. There is a process. We are not saying anything right now. Either we will reduce it or not. There is a constitutional issue involved," said the central government's law officer, suggesting that the PIL could be treated as a representation before the GST Council. The petitioner, on the other hand, responded to the Centre's objections by citing the recommendations of the Parliamentary Standing Committee on Environment, Forest and Climate Change and argued that air purifiers were being taxed under the wrong GST slab. "A reading of the notification clearly shows that they fall under a different schedule and are being taxed incorrectly," said lawyer Madan.

He further stated that any delay would only exacerbate the hardships faced by residents of the national capital. However, the Delhi High Court stated that it could not issue final directions in the matter without receiving a counter affidavit. The next hearing in the case will now be held on January 9th.