Provisions under Section 15 of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Refund of Integrated Tax Paid on Supply of Goods to International Tourist Leaving India”, are as under:
Section 15 of IGST Act 2017: Refund of Integrated Tax Paid on Supply of Goods to International Tourist Leaving India (CHAPTER VI – REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST)
The integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditions and safeguards as may be prescribed.
Explanation: For the purposes of this section, the term “tourist” means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes.
Commentary on Section 15 of the IGST Act
Section 15 of the Integrated Goods and Services Tax (IGST) Act, 2017 deals with the refund of integrated tax paid on the supply of goods to international tourists leaving India. Here’s a commentary on the provisions of this section:
The objective of this section is to facilitate a refund mechanism for integrated tax paid by international tourists on goods they purchased during their stay in India. This provision aims to encourage tourism by providing a tax refund to tourists, similar to the concept of VAT refunds in many countries.
In order to be eligible for the refund, the person must qualify as a “tourist” as defined in the explanation provided in the section. A tourist is a person who is not normally resident in India and enters the country for a stay of not more than six months for legitimate non-immigrant purposes.
Goods taken out of India:
The refund is applicable only on the supply of goods that the tourist takes out of India. This means that the tourist should be able to produce evidence of exporting the goods, such as a bill or a receipt, to claim the refund.
Manner of refund:
The manner in which the refund is to be processed, along with the conditions and safeguards, shall be prescribed by the government. This means that the government will issue detailed guidelines and rules regarding the refund mechanism, including the documentation required, the procedure to be followed and any other relevant conditions.
In summary, Section 15 of the IGST Act, 2017 aims to promote tourism in India by allowing international tourists to claim a refund on the integrated tax paid on goods they take out of the country. The government will prescribe the manner, conditions and safeguards for processing such refunds, ensuring that the process is transparent and efficient.
Note: The IGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through IGST Extension to J&K Act 2017, IGST (Amendment) Act 2018. Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023, including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective IGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.
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