Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 8-3-2018 Last Replied Date:- 3-12-2018 – Section 15 of IGST Act, 2017 deals with refund of IGST paid on supply of goods to tourists leaving India (International Tourist) under Integrated Goods and Services Tax (IGST). Section 15 of the IGST Act provides for refund to be allowed to tourist on supply of goods being taken along by him at the time of leaving India. The refund to be allowed to him is subject to such condition and in the manner as may be prescribed (yet to be prescribed). Who is a foreign tourist The term tourist has been defined in explanation to section 15 of the IGST Act to mean: a person not normally resident in India. who enters India for a stay of not more than six months. for legitimate non immigrant purpose. Thus, for being a tourist for the purpose of IGST, the person should be not normally resident in India and maximum stay should not exceed a period of six months. However, a foreign national who ha
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in India and it will be eligible for treatment given to export of goods. Thus, goods taken along by the tourist needs to be free from any taxes in India. Refunding IGST to such tourist is a method by which such goods are made free from taxes in India. Charging of IGST Section 10 of the IGST Act provides the rule for place of supply of goods. According to these rules, in case goods supplied with in the same state is a intra state transaction and is chargeable to CGST and SGST. Since, sec 15 of the IGST Act prevails in the case of tourist. The Supplier needs to take the proof of passport and visa of such tourist and then arrange to charge IGST on goods supplied to such tourist. Thus, the passport and copy of visa is an evidence with the supplier in India as the basis for charging IGST on such transactions. Are Indians on work permit visiting India are tourists Such Indians coming to India for a short duration can not be considered tourists for the purpose of IGST as section 15 of the IGS
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) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit; (ii) goods imported into the territory of India till they cross the customs frontiers of India; or (iii) supplies made to a tourist referred to in section 15. That as per the above provision, a supply where place of supply and location of supplier is within the same state, however if the receipt is a foreign tourist the same will be treated as inter state supply. For a example Mr John of USA ( Fulfills condition of foreign tourist) visits a showroom in Jaipur and purchased some jewellery and goods are handed over to Mr. John on the Showroom itself. In this case the place of Supply is in Rajasthan and location of Supplier is also in Rajasthan, therefore as per normal rule it is a intra state supply. However since Mr. John is a foreign tourist by virtue of the proviso, it becomes an inter state supply. (Similarly like a sale to SEZ Unit) While Filling GSTR-1, there is exist a problem that when w
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