Centre Opposes GST Cut on Air Purifiers, Cites Constitutional Process

The GST on air purifiers has triggered a legal and policy dispute after the Centre opposed court-led tax cuts, warning that judicial intervention could undermine the GST Council’s constitutional authority. The Union Government opposed the judicial orders for the reduction of GST on air purifiers on the grounds that such a judicial intervention could allow parties to avoid the constitutional process for determining GST rates by the GST Council. The Government of the Centre told the Delhi HC that putting these orders could lead to the opening of a floodgate of policy issues. Officials indicated that the orders have the potential to open the door for similar petitions requesting the reduction of GST on a large number of goods. The Centre requested that the Delhi High Court limit its orders and follow the procedure established under the Constitution for determining GST.

The Centre claimed that it is essential that the states and the Centre work together in making decisions regarding GST rates. It asserted that the courts cannot use judicial orders to replace legislative processes to establish policy mechanisms. Therefore, the Centre requested additional time to prepare and file a comprehensive response. The bench set a deadline of ten days for all responses to be submitted and also set a date for the next hearing.

Petition seeks medical device status to cut GST on air purifiers amid Delhi pollution

The petitioner requests an interpretation that air purifiers are considered a medical device. In light of the high levels of pollution occurring throughout the National Capital Region, the petitioner contended that air purifiers have shifted their status from being a luxury item to being a necessity for health. Petitioner Kapil Madan presented the justification for the petition, citing the Emergency Air Quality Crisis that has arisen in the National Capital Region. Petitioner claimed that the Government of India incorrectly classified air purifiers under a “higher” rate of GST. The petition requests that the Government reduce the GST from 18% to 5%.

Counsel for the petitioner highlighted that prolonged delays in the resolution of this issue will continue to inflict suffering on citizens due to poor air quality. While acknowledging the legitimacy of the public’s concerns about the affordability of air purifiers during times of extreme pollution, the judges also stated that until the government provides its response(s), there cannot be policy deliberations.

Court balances urgency with constitutional limits on tax policy

Previously, the Delhi High Court encouraged the GST Council to hold a meeting as soon as possible. The Court had asked if it was possible for the GST Council to hold a meeting during the winter recess. The Central Government replied that GST Council meetings require a physical presence of those attending. The counsel for the Government stressed that the GST Council is based on a federal structure and that decisions are made through voting procedures, so attendance is necessary for participation. Counsel for the Government also questioned whether the issue raised in the case could be categorized as a public interest litigation.

The High Court acknowledged that recommendations from a Parliamentary Committee require examination by the Legislature. Nevertheless, the Judges of the Delhi High Court are still concerned about the increased costs of an air purifier for the general population. They further urged the Government to look for solutions within the limits of the Constitution, and for the time being, the bench has deferred the issuance of substantive orders and will await receipt of detailed affidavits. This case remains pending until the next hearing and is also subject to ongoing air pollution issues.

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