The GST Fitment Committee has recommended no reduction in GST on air and water purifiers, despite calls from a parliamentary panel and observations by the Delhi High Court seeking tax relief on air-purification products.

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Air purifiers and their parts, including HEPA filters, currently attract 18% GST. A proposal to reduce the rate to 5% or make these products tax-free was considered by the committee.

The issue has gained attention amid concerns over air pollution, particularly in cities facing poor air quality. The Delhi High Court, while hearing a petition concerning the classification of HEPA-equipped air purifiers, had observed that the GST rate should be reduced. A parliamentary committee had also recommended reducing or removing GST on air purifiers and HEPA filters.

However, the Fitment Committee cited concerns related to taxation and domestic manufacturing. It noted that a 5% GST rate could create an inverted duty structure, with manufacturers paying higher GST on inputs than the tax collected on finished products. A nil rate could also prevent manufacturers from claiming input tax credit, potentially increasing embedded costs.

The committee also pointed out that HEPA filters are used in hospitals, laboratories, clean rooms, HVAC systems and industrial facilities, making a lower rate limited to household products difficult to administer.

For water purifiers, the committee similarly recommended retaining the 18% GST rate on products and components such as RO membranes, filter cartridges and housings.