Refund of Integrated Tax to International Tourist
Refund of Integrated Tax to International Tourist (Section 15)
Q 1. What is the scope of the Section 15 of IGST Act, 2017?
Ans. Section 15 of the IGST Act, 2017 applies to international tourists. The IGST tax paid by the international tourist on the supply of goods is eligible for refund to the said tourist, subject to such conditions and safeguards as may be prescribed.
Q 2. Define “Tourist”.
Ans. 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.
Q 3. Supplies made to Tourists are leviable to which tax?
Ans. All the supplies made to tourists are inter-State supplies in accordance with Section 8 of the IGST Act, 2017 and accordingly are leviable to Integrated tax.
Q 4. On what supplies made to him, can the tourist claim refund?
Ans. 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.
Q 5. What are the procedures to be followed for claiming refund?
Ans. The procedures for claiming refund by the tourist is yet to be prescribed by the central government.
Q 6. Is the integrated tax paid by tourist on mixed supplies or composite supplies eligible for refund
Ans. A) In case of Composite Supplies, if the principal supply is of the goods, then same will be eligible for refund, though the element of service could be involved.
B) 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.
Q 7. A tourist has purchased Wine to be taken outside India. Can he claim refund of the tax paid?
Ans. Since there is no levy on the alcoholic liquor for human consumption under GST, the question of refund doesn’t arise.
Q 8. Can the crew members of the ship, aircraft or any other conveyance claim refund of tax paid under Section 15?
Ans. Yes, provided they satisfy the conditions as mentioned in Q1 and Q2.
Q 9. Can the NRI’s claim refund of tax paid under Section 15?
Ans. Yes, since the NRI’s are not normally resident in India they will be treated as tourist if the stay in India is for legitimate non-immigrant purpose for a period of less than 6 months.
MCQs – Refund to International Tourist – IGST Act, 2017 (Section 15)
Q 1. The Tourist can claim Refund of following taxes paid
(a) CGST and SGST/UTGST on supply of Goods and services
(b) IGST on supply of goods consumed in Jammu & Kashmir
(c) Tax paid on the supply of scotch to be taken out of India
(d) None of the above
Ans. (d) None of the above
Q 2. Tourist means a person
(a) Not normally resident in India
(b) Stays for less than 200 days in India
(c) Stays for legitimate and Non-Immigrant purpose
(d) Both (a) and (b)
Ans. (d) Both (a) and (b)
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