Central Govt. to Propose GST Refund on Foreign Tourists Purchases before GST Council

According to a source, the Central Government will soon address the problem of the Goods and Service Tax ( GST ) refund for purchases made by international tourists. Tourists are those who enter India with the goal to stay there for no more than six months.

To make that happen, the central government intends to present a proposal on the subject to the GST Council. Although the administration must resolve a number of matters before the council, this is a vital one that will reassure the visitors.

In accordance with Section 15 of the Integrated Goods and Services Tax (IGST) Act, any tax paid by a visitor leaving India on any supply of goods exported from India is reimbursed.

The process and regulations for tax refunds to international visitors will shortly be under consideration and may come into force early next year. While the Integrated GST Act has included provisions for international tourists to receive a Tax refund for purchases made locally and exported, the rules and method still need to be finalised.

Tax refunds to travellers from other countries are not new. There are already several nations that use this system. The reimbursement will be given to foreigners at the airport when they depart.

One of the key industries for our nation's revenue generation is tourism. The central and state governments have been working feverishly to promote tourism and entice tourists. This government action will undoubtedly lure tourists and promote the growth of the tourism industry.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates