International passengers buying goods at airport duty-free shops will not be subjected to GST in New Delhi and the department will soon clarify this exemption, an official said.
The New Delhi Authority for Advance Ruling (AAR) passed an order in March which declared that GST would be legible on sales of good from duty-free shops at the airport.
The official told PTI, “The position of the revenue department has always been that we cannot export our taxes. We will issue a clarification stating that duty-free would not levy GST.”
The revenue department will direct and clarify the duty-free shops the procedure. Shops will only have to collect a copy of the passport from the passenger to whom they sold the goods. The GST will be refunded by the Government later on. The passport copy will be kept as a proof for the official of sales of goods.
This also means the duty-free shops can claim the refund from the government for the GST it has already paid to manufacturer while purchasing the goods.
Such a decision from AAR had put such shops in a fix, these shops were not subjected to pay central sales tax (CST) and value-added tax (VAT) in the earlier indirect tax regime.
Source by newsworldindia.