GST Circular No. 176/08/2022-GST: Withdrawal of Circular No. 106/25/2019-GST
<p>The <strong>Central Board of Indirect Taxes and Customs (CBIC)</strong> issued <strong>Circular No. 176/08/2022-GST</strong> on <strong>6th July 2022</strong>, announcing the <strong>withdrawal of Circular No. 106/25/2019-GST</strong> related to <strong>tax refunds for retail outlets at international airports</strong>.</p><p>This change is linked to the <strong>omission of Rule 95A</strong> from the <strong>CGST Rules, 2017</strong>, which was originally introduced to provide <strong>GST refunds on inward supply of goods sold to international tourists</strong> at airport retail outlets beyond the immigration area.</p><hr><h2><strong>Key Highlights & Clarifications</strong></h2><h3><strong>1. What Was Circular No. 106/25/2019-GST About?</strong></h3><p>✔ Circular No. 106/25/2019, issued on <strong>29th June 2019</strong>, clarified <strong>Rule 95A</strong>, which allowed <strong>tax refunds on purchases made by outgoing international tourists</strong> at retail outlets beyond <strong>immigration counters</strong> in international airports.<br>✔ The refund was available <strong>only on indigenous goods</strong> and was to be processed <strong>against foreign exchange payments</strong>.</p><hr><h3><strong>2. Why Was This Circular Withdrawn?</strong></h3><p>✔ <strong>Rule 95A was omitted retrospectively</strong> from <strong>1st July 2019</strong> via <strong>Notification No. 14/2022-Central Tax, dated 5th July 2022</strong>.<br>✔ Since the <strong>legal provision itself was removed</strong>, the <strong>2019 circular became irrelevant</strong> and was <strong>withdrawn ab-initio (from the beginning)</strong>.</p><hr><h3><strong>3. Impact of Withdrawal</strong></h3><p><strong>For Retail Outlets at International Airports</strong><br>❌ <strong>No more GST refunds</strong> on sales made to international tourists at airport retail stores.<br>❌ Businesses operating in <strong>departure areas beyond immigration</strong> will now <strong>have to charge GST</strong> on such supplies.</p><p><strong>For International Tourists</strong><br>❌ <strong>GST paid on purchases at airport retail outlets will not be refunded</strong> anymore.<br>❌ <strong>Increased costs for international travelers purchasing goods at airports.</strong></p><p><strong>For Tax Authorities</strong><br>✔ Simplifies GST administration as <strong>Rule 95A no longer applies</strong>.<br>✔ Eliminates complications around <strong>processing refund claims</strong> for these retail transactions.<a href="https://cms.plasament.com/storage/cir-176-08-2022-cgst.pdf">cir-176-08-2022-cgst</a><br><a href="https://cms.plasament.com/storage/cir-176-08-2022-cgst.pdf">cir-176-08-2022-cgst</a><br> </p>