International passengers need not pay GST at airport duty free shops
New Delhi, Jun 3 () International passengers buying goods at airport 'duty-free' shops will not be subject to GST and the revenue department will soon clarify on this exemption, an official said. Following an order passed in March by the New Delhi bench of the Authority for Advance Ruling (AAR) stating that GST would be leviable on sale of goods from 'duty-free' shops at airports, the revenue department had received a number of representations seeking clarification on the issue.
"The position of the revenue department has always been that we cannot export our taxes. We will issue clarification stating that duty free shops would not levy GST," the official told .
The revenue department will clarify that duty-free shops will have to only collect a copy of the passport from the passenger to whom it sells the goods and later on seek GST refund from the government, the official added. This means, like exporters, duty-free shops can claim refund from the government for the GST it has paid in procuring goods from manufacturers. The copy of passport will be treated as proof of sale of the goods.