Union Government Opposes GST Reduction on Air Purifiers, Citing Constitutional Concerns

Government's Stance on GST for Air Purifiers

The Union government has informed the Delhi High Court that any judicial order to lower the Goods and Services Tax (GST) on air purifiers would be unconstitutional and infringe upon the separation of powers doctrine. This statement was reported on Thursday.

In an affidavit submitted on Sunday, the government emphasized that the GST Council is the only authority authorized to make decisions regarding indirect taxes as per Article 279A of the Constitution. It highlighted that tax rates are established through a cooperative federalism approach, which balances various fiscal interests.

Interference from the judiciary in this matter would undermine the constitutionally mandated process, the affidavit stated.

This affidavit was filed in response to a public interest litigation by advocate Kapil Madan, who is advocating for air purifiers to be classified as “medical devices” and for the GST on these products to be reduced from 18% to 5%.

On December 24, the court had instructed the GST Council to hold an urgent meeting to discuss the possibility of lowering the GST on air purifiers due to the severe pollution levels in Delhi and its neighboring regions.

Just two days later, the Union government cautioned the court that reducing the GST on air purifiers without adhering to proper procedures could lead to a “Pandora’s box” of issues.

The court is scheduled to hear the case on Friday.

In its affidavit, the Union government asserted that any court directive to alter GST rates, convene a GST Council meeting, or compel the Council to adopt a specific outcome would effectively place the court in the position of the GST Council, thereby performing functions that the Constitution has specifically assigned to the Council.

Such actions would violate the separation of powers doctrine and undermine the clearly defined constitutional role of the GST Council, the affidavit noted.

Furthermore, the government indicated that classifying air purifiers as medical devices would subject their import, manufacture, sale, and distribution to regulations under the 1940 Drugs and Cosmetics Act and the 2017 Medical Device Rules, thus controlling their market availability.

The government characterized the public interest litigation as a “motivated attempt” to achieve regulatory reclassification under the pretense of public interest.

It warned that such a regulatory change could favor a select group of entities with the necessary licenses and approvals, potentially leading to monopolistic conditions rather than improving public access.

The affidavit raised questions about the true motivations behind the current petition.

During the previous hearing on December 26, the court expressed the need for action to reduce the cost of air purifiers in light of the pollution crisis in the capital.

The bench questioned, “Why can’t it be done?” and urged, “Do whatever you have to do. Currently, an air purifier costs between Rs 10,000 and Rs 15,000. Why not lower the GST to a level that is affordable for the average person?”

Air quality in Delhi significantly worsens during winter, often ranking it as the most polluted capital globally. Factors such as stubble burning in Punjab and Haryana, vehicle emissions, firecracker use during Diwali, lower temperatures, reduced wind speeds, and pollution from industries and coal plants exacerbate the situation.