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Monday, Oct 14, 2019

Duty-free shops are eligible for GST input tax credit refund: Bombay HC

mumbai Updated: Oct 10, 2019 00:15 IST
HT Correspondent
HT Correspondent

The Bombay high court has quashed a Maharashtra Sales Tax order refusing refund of input tax credit to duty-free shops at the Mumbai international airport.

In an October 7 order, the court said that these shops are eligible to get the refund of the input tax credit on the entire amount of Goods and Services Tax (GST) paid. The court added that the imposition of local taxes on these outlets would hamper foreign trade.

A division bench of justices Ranjit More and Bharati Dangre noted that if a duty-free shop, which caters to international passengers, is subjected to local taxes by the state then the price of the goods, which are supposed to be free of taxes and duties, will go up.

“This would prevent the duty free shops in India from competing with the duty-free shops at international airports elsewhere in the world. This will hamper and prejudicially affect our foreign trade, and augmentation and conservation of foreign exchange,” the court said. “The GST regime is based on one nation, one tax theory. The authorities in the state of Maharashtra cannot give a discriminatory treatment, particularly when the refund has been and is being granted in several other states,” the bench said.

With PTI inputs

First Published: Oct 10, 2019 00:15 IST

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