Soon tourists visiting India will get GST refunds on their local shopping
As part of a move to implement a statutory provision, the government will soon launch a pilot programme to refund goods and services tax (GST) paid by foreign tourists visiting India.
The Integrated GST Act, passed five years ago, provides for refunds on goods taken out of the country by a tourist, defined as someone who is not normally a resident of India and is in the country for less than six months for non-immigrant purposes.
Several countries use a GST or VAT refund system for tourists for consumption outside the country because taxes are typically not exported, a principle that is also followed in duty-free shops at airports.
In these countries, products that exceed a certain threshold are eligible for tax refunds, which can be claimed at the airport and paid there, or it is frequently transferred to the buyer’s bank account.
According to government sources, now that the GST regime has settled, the Centre is discussing the possibility of a pilot, which will involve outlets such as the Cottage Industries Emporium and will be expanded based on the experience.
Meta: The Government of India will soon start a pilot programme under which the good and services tax received on local shopping shall be refunded back to tourists visiting India