Refund of duty paid

Any tax paid by a foreigner in Indian will be refunded under GST rules. A foreign tourist is defined as a person who is not normally a resident in India, who enters India for a stay of not more than six months. As mentioned in Section 15 of IGST Act “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”. Tax refunded here is only on goods and not on services. And no refund shall be available on goods consumed in India, but only on goods taken out of India.

The refund process has to be in terms with refund rules under GST. Generally, foreign tourists can claim the refund of tax at the customs frontier by submitting the original bills of the goods purchased.