Nov 112018
 

International Tourist under GST

Tourist meaning under IGST act –

As per section 8 of IGST act –

Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply:

Provided that the following supply of goods shall not be treated as intra-State supply –

(i)       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

As per section 15 of the IGST act the term “tourist” means a person not normally resident in India, who enters into India for a stay of not more than six months for legitimate non-immigrant purposes.

Thus, tourist is a person to come to India for non immigrant purpose.

Scope of taxation under GST:

All the supplies made to tourists are inter-State supplies in accordance with Section 8 of the IGST Act, 2017 and accordingly are levied to integrated tax.

Benefit to tourist under GST:

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.

Thus, anything sold to tourist on which IGST is paid by him refundable to tourist in case the goods are not consumed by him within India and same is taken by him out of India.

On what supplies refund is claimable:

The tourist can claim refund of integrated tax only on the supply of goods taken out of India. The tourist cannot claim the refund of tax paid on the supply of goods consumed in India or on supply of services.

Composite supplies to tourist:

If the principal supply is of the goods, then same will be eligible for refund, though the element of service could be involved.

Mixed supplies to tourist:

In case of Mixed Supplies comprising of goods, or goods & services, if  the supply of goods attracts highest rate of tax, then same will be eligible for  refund.  However, if the mixed supply consists of only services, then the same will not be eligible for refund.

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