CBIC vide Circular No. 106/25/2019-GST dated June 29, 2019, has clarified the manner and procedure for filing and processing of refund claims which are notified by the Government vide notification no. 11/2019-Central Tax (Rate), 10/2019-Integrated Tax (Rate) and 11/2019-Union territory Tax (Rate) all dated June 29, 2019 issued in exercise of powers under section 55 of the Central Goods and Services Tax Act, 2017 (“CGST Act‟) has notified that the retail outlets established at departure area of the international airport beyond immigration counters shall be entitled to claim refund of all applicable Central tax, Integrated tax, Union territory tax and Compensation cess paid by them on inward supplies of indigenous goods received by them for the purposes of subsequent supply of goods to outgoing international tourists i.e. 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 against foreign exchange (“eligible passengers”).
The Following are the specified conditions and procedures for filing and processing of such refund claims are as hereunder:
- Who is eligible for refund
- Procedure for applying for refunds
- Manual filing of refund claims
- Processing and sanction of the refund claim
The scheme shall be effective from July 01, 2019 and would be applicable in respect of all supplies made to eligible passengers after the said date. In other words, retail outlets would be eligible to claim a refund of taxes paid on inward supplies of indigenous goods received by them even prior to July 01, 2019 as long as all the conditions laid down in Rule 95A of the CGST Rules and Circular No. 106/25/2019-GST are fulfilled.
Note: The similar notification has been issued in the IGST Act, 2017 and UTGST Act, 2017 as well.
Complete Circular can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2019/07/circular-cgst-106.pdf