GST Refund for Tourists Visiting India

Many countries such as Canada, Australia, New Zealand and others implemented GST and offers GST refund for tourists visiting their country. Similarly, in India, the GST Act provides options to avail GST refund for foreign tourists visiting India. The refund applies for the GST goods purchased in India as Goods and Services Tax (GST) functions as an indirect tax levied on the consumption of goods and services supplied in India. In this article, we look at GST refund for Tourists as well as the procedure for claiming a refund as a Tourist.

Get your GST refund effortlessly with IndiaFilings experts! We're here to guide you through the process!

Get Expert Help!

GST Refund for Tourists (Rule)

Section 15 of the Integrated Goods and Service Tax (IGST) Act deals with a refund of integrated tax paid on supply of goods to tourist leaving India. According to Section 15 of the IGST Act: Refund applies to the integrated tax paid by foreign tourist leaving India on any supply of goods taken out of India. The refund of the integrated tax applies to the purchase made by the foreign tourist leaving India as per the conditions prescribed in the IGST Act.

Explanation: For the purposes of this section, the term “tourist” refers to a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes.

Hence, tourists visiting India who enter and stay for not more than six months on legitimate non-immigrant purposes are eligible to claim a refund of IGST paid on supply of goods taken out of India. It is important to note that GST refund for tourists will not be allowed on goods or services that they consumed while in India. The refund applies only on the supply of goods taken out of India by the tourist; hence the product remains unconsumed in India. Learn more: How to get GST refund?

Process for Claiming GST Refund

The GST Refund Rules are yet to provide a methodology for Foreign Tourists visiting India to claim GST refund. The following pdf refers to the present GST Refund Rules in India:

Open PDF in new tab

Though the procedure for tourists to claim GST refund remains tenuous, the Ministry of Finance shall streamline the GST law to create a standardised procedure for processing a GST refund claim across India. On filing a GST refund application, an acknowledgement for refund application would be provided within 14 days of the refund application is acceptable. Also, on receiving a GST refund request, the concerned Officer would have to convey the status of the application within 14 days. If there are any deficiencies in the application, the GST refund request would be sent back to the applicant along with the list of deficiencies and the applicant can refile the application. If there are no errors or deficiencies, the GST refund claims, if in the order must be sanctioned within a period of 60 days from the date of receipt of the claim. Officers shall not issue deficiencies memo after 14 days during the process of the refund application process. Hence, foreign tourists can expect a quick and standard process for refund processing.

Simplify your GST refund process with IndiaFilings professional assistance!

Get Started!

Back to Learn

Frequently Asked Questions

Common questions about GST Refund for Foreign Tourists Visiting India.

The GST refund for tourists in India allows foreign tourists visiting India to claim a refund of the Integrated Goods and Services Tax (IGST) paid on goods purchased in India and taken out of the country. The refund applies only to the IGST paid on the supply of goods that the tourist is taking out of India, not for any goods or services consumed within the country.

According to the IGST Act, a "tourist" eligible for the GST refund refers to a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes. Therefore, foreign tourists visiting India and staying for not more than six months on legitimate non-immigrant purposes are eligible to claim a refund of IGST paid on goods taken out of India.

While the GST Refund Rules are yet to provide a specific methodology for foreign tourists to claim the GST refund, the Ministry of Finance is expected to streamline the process soon. Once the procedure is established, tourists will likely need to file a GST refund application, which will be acknowledged within 14 days if acceptable. The concerned officer will then convey the status of the application within 14 days and process the refund claim within 60 days if there are no deficiencies.

The article does not mention any specific time limit for claiming the GST refund as a tourist. However, it is advisable to initiate the refund process before leaving India to ensure that the necessary documentation and evidence can be provided for the purchased goods being taken out of the country.

The article does not provide specific details on the required documents for claiming the GST refund as a tourist. However, it is likely that tourists will need to provide proof of purchase, such as invoices or receipts, along with evidence that the goods have been taken out of India, like export documents or customs declarations.

No, the GST refund for tourists is not available for services consumed in India. The refund applies only to the IGST paid on the supply of goods that the tourist is taking out of the country. Any goods or services consumed while in India are not eligible for the refund.

According to the article, once the GST refund application is filed and found acceptable, the concerned officer must convey the status within 14 days. If there are no deficiencies, the GST refund claims must be sanctioned within a period of 60 days from the date of receipt of the claim. However, the specific timeline may vary depending on the actual process established by the Ministry of Finance.

The article does not explicitly mention whether the GST refund for tourists applies to goods purchased as gifts. However, as long as the goods are taken out of India by the tourist and meet the eligibility criteria, it is likely that the refund can be claimed, regardless of whether the goods are for personal use or intended as gifts.

The article does not specify any minimum purchase amount required for claiming the GST refund as a tourist. As long as the goods are purchased in India, the IGST is paid, and the goods are taken out of the country by the eligible tourist, the refund should be applicable, regardless of the purchase amount.

Yes, the article mentions that a tourist can seek professional assistance from service providers like IndiaFilings for simplifying the GST refund process. Such experts can guide the tourist through the refund procedure and ensure a hassle-free experience in claiming the GST refund.