The Delhi High Court on Wednesday directed the Goods and Services Tax (GST) Council to urgently deliberate upon the issue of reduction or complete exemption of GST on air purifiers, in view of the persistent deterioration in air quality across the National Capital Region.
The Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela issued the direction on a public interest litigation challenging the levy of 18 per cent GST on air purifiers and seeking their classification as medical devices.
At a prima facie stage, the High Court expressed the view that air purifiers, given the nature of their function and utility in mitigating respiratory health risks, may merit taxation at the concessional rate of 5 per cent, akin to notified medical devices. It noted that the issue involved serious public health implications, particularly in the context of recurrent air pollution emergencies in Delhi and adjoining areas.
The High Court also took note of submissions pointing to the recommendations of the Parliamentary Standing Committee on Climate Change, which had advised the Union Government to consider either abolishing or substantially reducing GST on air purifiers in light of worsening environmental conditions. These recommendations were placed before Parliament and were treated as a relevant policy input warranting serious consideration.
During the hearing, the Centre informed the High Court that any decision concerning GST rates fell within the exclusive domain of the GST Council, a constitutional body constituted under Article 279A of the Constitution and comprising representatives of the Union and all States. It was submitted that alterations in tax rates require adherence to the prescribed consultative mechanism and cannot be unilaterally effected by the executive.
While acknowledging the federal structure and procedural requirements governing the GST Council, the High Court emphasised that extraordinary environmental and public health circumstances necessitate expeditious decision-making. It observed that administrative complexity cannot be a justification for inaction where fundamental rights and public welfare are at stake. It further clarified that, should an in-person meeting pose logistical challenges, the Council may convene through virtual means.
The Division Bench further recorded that medical devices covered under the 2020 notification attract a GST rate of 5 per cent, whereas air purifiers continue to be taxed at 18 per cent, notwithstanding their comparable functional outcomes. It applied the doctrine of reasonable classification, noting that differential treatment between similarly situated goods may require closer scrutiny.
The High Court observed that the right to a pollution-free environment was an intrinsic component of the right to life under Article 21, as enunciated in decisions such as Subhash Kumar v. State of Bihar and MC Mehta v. Union of India. Fiscal policy, though ordinarily within the legislative and executive domain, was not immune from judicial review where it manifested arbitrariness or disproportionately impacts fundamental rights, it added.
The Division Bench directed the GST Council to arrive at a reasoned decision at the earliest and listed the matter for further hearing on December 26.
The petition assailed the prevailing GST regime on air purifiers as arbitrary and violative of Articles 14 and 21 of the Constitution, contending that the State has a positive obligation to safeguard the right to health and clean air. Reliance was placed on the February 2020 notification issued under Section 3 of the Drugs and Cosmetics Act, 1940, whereby certain medical devices were formally regulated and subjected to a lower GST rate of 5 per cent. Petitioner Kapil Madan further contended that air purifiers, by virtue of their role in aiding respiration and preventing pollution-induced ailments, fell within the functional ambit of medical devices.
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