Finally, a long-awaited notification has been issued by the government of India hereby exempting the supplies made by outlets at international airports to outgoing International passengers. This was a long due notification and hence, will be welcomed all international passengers.
Exempting supplies? What does it mean?
Whenever a person passes through the immigration counter at the airport, he confronts with various store outlets. The outgoing passengers buy the goods and carry it with them outside India.
Until now, all goods purchased by the passengers were chargeable to GST which is actually against India’s foreign policy of export the good, not the taxes. But from today, the government has finally exempted the outlets for charging any GST on any supplies made to the international passengers.
GST exemption to outlets at the international airport
Wide notification 11/2019, the government of India has exempted all the outlets located at the international airports. The exemption will bring out the cost of goods consumed by international passengers.
An important question
As the government has exempted the outlets at international airports, the question will arise that what will happen to the inputs of those particular outlets? Do ITC on supplies made to international tourist will be reversed and added to the further cost of the outlet?
Don’t worry, we have the answer.
Refund to outlets supplying to international passengers at airports
The government-wide another notification dated 11/2019 (central rate) has specified those respective outlets as a class of person eligible for claiming a refund as per the rules prescribed. Now, with this notification, no ITC shall be reversed, rather it will be eligible to be taken as refund under GST.