Kerala High Court Grants Interim Exemption To Mother From Payment Of IGST On Imported Medicine For Rare Disease

The petitioner has approached the Court seeking removal of GST for the medicine Risdiplam that she purchases from ABS Chemist & Druggist (6^th respondent) at Ernakulam. Risdiplam is imported from F-Hoffmann-La Roche Ltd, Switzerland and costs rupees 6.07 Lakh per bottle, including 12% GST.

Justice Gopinath P invoking the writ jurisdiction of the Court under Article 226 of the Constitution stated that the petitioner is qualified to get an exemption from tax payment since her application seeking tax exemption was pending before the Union Finance Minister.

“Accordingly, it is directed that the petitioner will be entitled to purchase the drug Risdiplam (brand name Evrysdi) from the additional 6th respondent without payment of GST. The additional 6th respondent is permitted to issue a bill of supply as contemplated by Section 31(3)(c) of the Central Goods & Services Tax Act / State Goods & Services Tax Act. This arrangement shall be provisional, and it will be open to the additional 6th respondent to apply to this Court for further modifications/directions regarding any difficulty it may face in supplying the goods as directed.”

The petitioner stated as per Article 279 A (4), the GST Council is empowered to make recommendations to the States on any matter relating to goods and services for seeking exemptions from levy of GST. Further, the petitioner submitted before the Court that as per Circular No.09/2014-Customs dated August 19, 2024, Union Finance Minister is competent to grant for ad hoc exemption from payment of tax on a case to case basis for the import of medicines for the treatment of life-threatening diseases. It is submitted that the petitioner's application for tax exemption is pending consideration before the Union Finance Minister.

The plea has been moved by Advocates T Sanjay, Sanil Kumar G, Shabna T

Case title: Amrutha S v Union of India

Case number: WP(C) NO. 6972 OF 2024

Click Here To Read/Download The Interim Order