Refund of Taxes Paid on Inward Supply of Indigenous Goods by Retail Outlets at International Airports
<p><span>The Government of India has issued Circular No. 106/25/2019-GST to provide clarifications on the refund of taxes paid on inward supplies of indigenous goods by retail outlets established at the departure area of international airports beyond immigration counters. The key points from the circular are as follows:</span></p><ol start="1"><li><span><strong>Eligibility for Refund</strong>:</span><ul><li><span>Retail outlets established at departure areas of international airports, beyond immigration counters, can claim a refund of Central tax, State tax, Integrated tax, Union territory tax, and Compensation cess paid on inward supplies of indigenous goods.</span></li></ul></li><li><span><strong>Conditions for Refund</strong>:</span><ul><li><span>Retail outlets must be registered under the CGST Act and have a valid GSTIN.</span></li><li><span>Refund claims can only be made for goods supplied to outgoing international tourists against foreign exchange.</span></li></ul></li><li><span><strong>Procedure for Refund Claims</strong>:</span><ul><li><span>Retail outlets must maintain electronic records of duty-paid indigenous goods brought to the retail outlet and their supplies to eligible passengers.</span></li><li><span>Refund claims are based on the invoices of inward supplies and must be filed manually in FORM GST RFD-10B, along with required supporting documents.</span></li><li><span>Proper officers will process and sanction refund claims, and disburse the refund amount accordingly.</span></li></ul></li><li><span><strong>Responsibilities of Retail Outlets</strong>:</span><ul><li><span>Retail outlets must prominently display a notice indicating that international tourists are eligible for tax-free purchases.</span></li><li><span>They must ensure accurate and up-to-date maintenance of records and provide necessary declarations and documents for refund processing.</span></li></ul></li></ol>