Delhi pollution: Why did Centre oppose 'loaded' High Court plea to reduce GST rates on air purifiers?

The Union government on Friday opposed a plea seeking a reduction in the GST rates for air purifiers amid worsening pollution levels in Delhi-NCR.

The Centre warned the Delhi High Court that a "Pandora's box" situation might ensue if the latter were to order the GST Council to slash the tariffs on air purifiers from 18 per cent to 5 per cent—by re-declaring them as "medical devices".

It also said that the applicable process involved in reducing/removing the GST rate on air purifiers could only be conducted physically, not virtually, and by following due process, as per a Live Law report.

A vacation bench of Justices Vikas Mahajan and Vinod Kumar—who had heard the original plea filed in the Delhi HC—has agreed to the Centre's demands for more time, directing it to file a detailed response to the petition within 10 days.

The matter has been listed for further hearing on January 9.

The Delhi HC on Tuesday had also asked the GST Council to convene an urgent meeting to consider the revision proposal, saying that the air pollution crisis was an "emergency".

However, Additional Solicitor General (ASG) N. Venkatraman, who is appearing for the Centre, said on Friday that it had concerns about the plea, which he termed as a "loaded petition", claiming that someone possibly wanted a "monopoly in air purifiers".

"GST council is a constitutional body. All 30 states and UTs have to agree. It involves finance minister as members. Voting has to be done only physically ... the court's concern was ... why GST should not be reduced to 5 per cent. The price range starting from 10-12k goes to 60k, it is beyond reach of common man. Why not to bring it down to a level which is in reach of common man?" he added.

The petitioner, Advocate Kapil Madan, has urged quick action, declaring that Delhi's residents would continue to suffer if action were not taken quickly. He has earlier claimed that air purifiers already were within the criteria for a 'medical device' (as per a 2020 notification from the Centre).

“If you cannot provide clean air to people, the minimum you can do is reduce GST on air purifiers,” a Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela had told the Centre's counsel.

ALSO READ | ‘If you can’t give clean air, at least cut GST’: Delhi High Court pulls up Centre over 18% tax on air purifiers

Meanwhile, the Air Quality Early Warning System (AQEWS) for Delhi has said that the Air Quality Index (AQI) level for the national capital is likely to stay in the 'Very Poor' category over the next six days.

This comes after air quality marginally came down from the 'Severe' category, leading the Commission for Air Quality Management (CAQM) on Wednesday to lift the Graded Action Response Plan (GRAP) IV over Delhi-NCR for now.