The company is selling air, which is said to be fresh and clean, from Rocky Mountains for up to $28 (£18.50) per bottle, The Times of India reported.
The sales of the fresh air bottles increased after Beijing issued red alert over pollution for the first time on 7 December.
The schools have been asked to remain closed in a bid to tackle growing pollution. The government also urged people to stay indoors and stop construction works.
Vitality Air has already sold 500 bottles in China, with another 700 bottles currently being shipped.
Vitality Air China representative Harrison Wang was quoted by MailOnline as saying: "We have sold everything, and we now have a bunch of customers and people wanting to be our distributors."
Besides Vitality Air, a restaurant in Zhangjiagang city in the Jiangsu Province is also charging its customers for fresh air after it installed air filtration machines.
