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The finance ministry has decided to exempt goods imported or supplied for flood relief operations in Kerala from basic customs duty/Integrated Goods and Services Tax (IGST) till December 31, 2018, sources said.
A notification to this effect is likely to be issued tomorrow.
The notification will be later placed in the next meeting of the GST Council.
Sources said the finance ministry has proposed to issue a "general exemption" notification under a section of Customs Act to exempt goods from Basic Customs Duty and IGST, which are "imported/supplied for donation for the relief and rehabilitation of the people of Kerala affected by the floods".
The tax exemptions will be valid till December 31, 2018.
Kerala has been hit hard by devastating rains and floods leading to loss of lives and damage to property.
Earlier, Kerala Chief Minister Pinarayi Vijayan had written to the Union Finance Minister requesting for a general exemption of Customs duty and IGST for consignments being despatched or imported from abroad for relief works in the state.
