The travelers of the International flights do not have to pay the Goods and Services Tax (GST) while purchasing the goods from the Airport’s duty free shops and the Ministry of Finance shall soon issue the necessary clarifications in this regard.
Earlier, as per the ruling given by the AAR Delhi in the March 2018, the GST would be levied on the sale of goods from the Duty free shops at Airports. After this, the Ministry of Finance has received letters from various sources to clarify the position. The view point of the Ministry of Finance is always clear that the taxes cannot be exported in any case.
As per the experts, after the AAR ruling, there has been a confusion regarding the taxability of the goods being sold at the Duty free shops. Earlier, the said shops were exempt from the VAT regime and the said sale were treated as Exports under the previous VAT regime.
The Ministry of Finance shall clarify that the Duty free shops shall have to take the copy of passports as a proof of the sale to whom the goods has been sold and afterwards, the shops can claim the refund of the GST paid on the purchase of the goods.
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