In India, for local shopping, foreign tourists might get GST refund

 Wednesday, July 27, 2022 


Very soon, the Indian government will kick-start a pilot project for the repayment of goods and services tax or the GST paid by international tourists coming to India as part of a decision to execute a step that is there in the law.

Enacted five years back, the Integrated GST Act, offers a reimbursement on goods, which are carried out of the county by tourists, in general, a person who is not an Indian resident and is in the country for not more than six months for non-immigrant reasons.

For tourists, numerous countries adhere to a system of GST or VAT refund for consumption outside the country as taxes are characteristically not exported; it’s a standard that is maintained in airports’ duty-free shops as well. In these countries, products above a threshold are entitled for reimbursement of taxes, which can be asserted directly at the airport and the payment can be received there or often it is transferred to the bank account of the buyers.

Sources from the government said that with the GST system settling down, the central government is talking about the prospect of a pilot, which will comprise outlets like the Cottage Industries Emporium and on the basis of experience, it will be developed.

Tax experts explained that numerous modifications are needed to execute the plan and it will take some time for sure. To start with, the rules to operationalise the provision, even for a pilot, need to be put in place.

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