Notification No. 10/2019 – Integrated Tax (Rate) Explained

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Notification No. 10/2019 – Integrated Tax (Rate): Seeks to specifies retail outlets established in the departure area of an international airport, beyond the immigration counters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund.

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (I) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R (E).— In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with section 55 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby specifies retail outlets established in the departure area of an international airport, beyond the immigration counters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund of applicable integrated tax paid on inward supply of such goods, subject to the conditions specified in rule 95A of the Central Goods and Services Tax Rules, 2017.

Explanation. - For the purposes of this notification, the expression “outgoing international tourist” shall mean a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes.

2. This notification shall come into force with effect from the 1st day of July, 2019.

(Ruchi Bisht)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 10/2019 - Integrated Tax (Rate)

Q1: What is Notification No. 10/2019 – Integrated Tax (Rate)?

Answer:
Notification No. 10/2019 – Integrated Tax (Rate) allows duty-free retail outlets at international airports to claim a refund of IGST paid on inward supplies, when goods are sold tax-free to outgoing international tourists.

Q2: Who is eligible to claim IGST refund under this notification?

Answer:
Only retail outlets located in the departure area beyond immigration counters at international airports are eligible. Normal shops inside the city or before immigration are not covered.

Q3: Who is considered an “outgoing international tourist”?

Answer:
As per the explanation to Notification No. 10/2019:
Person not normally resident in India
Stay in India not exceeding 6 months
Visit must be for legitimate non-immigrant purposes
This definition aligns with Rule 95A of CGST Rules.

Q4: From which date is this notification applicable?

Answer:
The notification is applicable from 1 July 2019, as clearly stated in the notification itself.

Q5: Is GST charged to the international tourist?

Answer:
No ❌. The supply is tax-free to the tourist, but the retailer pays IGST on inward supplies and later claims refund.

Q6: Which law allows this refund mechanism?

Answer:
Section 55 of CGST Act, 2017 – Refunds
Section 20 of IGST Act, 2017 – Application of CGST provisions to IGST
Rule 95A of CGST Rules, 2017 – Procedure for duty-free shop refunds

Q7: What is Rule 95A of CGST Rules?

Answer:
Rule 95A prescribes:
Conditions for refund
Required documentation
GST return compliance
Certification and record-keeping
Retailers must strictly follow this rule to avoid refund rejection.
👉 Ensure accurate filings with Finodha GST Return Filing:
https://finodha.in/gst-return-filing/

Q8: Can a duty-free shop claim ITC instead of refund?

Answer:
No. Since outward supply is tax-free, ITC cannot be utilized. The only route is refund of IGST paid on inward supplies under Section 55.

Q9: Is GST registration mandatory for airport duty-free shops?

Answer:
Yes ✅. Duty-free outlets must be GST registered to:
Pay IGST on purchases
File refund applications
Comply with Rule 95A
👉 Register easily with Finodha GST Registration Services:
https://finodha.in/online-gst-registration/

Q10: What documents are required for IGST refund?

Answer:
Common documents include:
Tax invoices of inward supplies
Proof of duty-free outward supply
Passport and boarding details (aggregate records)
GST returns (GSTR-1 & GSTR-3B)

Q11: Does this notification apply to domestic airport shops?

Answer:
No ❌. Shops catering to domestic passengers or located before immigration are not eligible.

Q12: How does this benefit airport retailers?

Answer:
Improves cash flow 💰
Prevents GST cost accumulation
Aligns Indian duty-free pricing with global standards

Q13: What happens if GST returns are incorrectly filed?

Answer:
Incorrect or delayed GST returns may lead to:
Refund rejection
Departmental notices
Working capital blockage
👉 Stay compliant with Finodha GST Compliance Services:
https://finodha.in/gst-compliance/

Q14: Can new airport retailers start operations under this benefit?

Answer:
Yes. New duty-free businesses can:
Set up a company
Obtain GST registration
Start refund-based GST compliance
👉 Start your business with Finodha Setup Business Services:
https://finodha.in/setup-business/

Q15: Is professional help recommended for GST refunds?

Answer:
Absolutely ✅. Refund claims involve strict scrutiny and documentation.
👉 Need expert help? Consult a Finodha GST Expert today!

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