GST refund to foreign Tourist/International Tourist or person visiting India – Impact on foreign tourist in India – NRI, OCI etc
by Paras Mehra 12.6K
1.0 Introduction
India is not a very dream destination for foreign tourist in India as compared to other Asian countries. Every year around 6.1 million tourist visit India which is very less as against to Singapore or Thailand which receives more than 10 million tourist.
Tourism is a big industry and hence to extend benefit to the foreign tourist in India, the government under GST has decided to refund any tax paid by the foreign tourist in India. Let us understand the same in detail:
2.0 Meaning of tourist under GST
Under section 15 of IGST act, tourist means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes.
3.0 Refund of IGST to international tourist in India
As per the section 15 of IGST act, any tax paid by foreign tourist leaving India on any goods taken out by them from India shall be refunded. The important point here is that tax is refund only on goods and not services.
4.0 Refund of IGST on goods consumed in India by international tourist
Refund of IGST shall only be allowed on goods taken out from India and not on the goods consumed in India. Therefore no IGST refund shall be available on goods consumed in India by international tourist.
5.0 Whether Non Resident India (NRI) or overseas citizen of India (OCI) is also eligible for refund?
Yes, NRI and OCI are also eligible to claim the refund on IGST paid. This is because section 15 applies to each person who is not normally resident in India.
6.0 What tax to be charge from foreign tourist?
Any supply by Indian resident to foreign tourist shall be treated as interstate supply and hence IGST shall be levied.
7.0 Process of claiming the refund of IGST by foreign tourist
The refund process has to be in terms of refund rules under GST. Practically, foreign tourist can claim the refund of tax at the custom frontier by submitting the original bills of item purchased by them.
8.0 Conclusion
In case you have any query, kindly write to us at info@hubco.in.
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