Notification No. 11/2019 - Central Tax (Rate) Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 11/2019 – Central 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 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 central 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. 11/2019 - Central Tax (Rate)

Q1: What is Notification No. 11/2019 – Central Tax (Rate)?

Answer:
Notification No. 11/2019 – Central Tax (Rate) allows airport duty-free retail outlets to claim refund of CGST paid on inward supplies of goods sold tax-free to outgoing international tourists.

Q2: From which date is Notification No. 11/2019 applicable?

Answer:
The notification is effective from 1 July 2019, as clearly stated in Paragraph 2 of the notification.

Q3: Which GST law section allows such refund?

Answer:
The refund entitlement is granted under Section 55 of the CGST Act, 2017, read with Rule 95A of the CGST Rules, 2017.

Q4: Who can claim refund under this notification?

Answer:
Only retail outlets that:
Are located beyond immigration counters
Operate in the departure area of an international airport
Make tax-free supply of goods
are eligible to claim refund.

Q5: Who is an “outgoing international tourist” under GST?

Answer:
An outgoing international tourist means:
A person not normally resident in India,
Who enters India for not more than six months,
For legitimate non-immigrant purposes.
This definition is explicitly provided in the Explanation to the notification.

Q6: Are Indian passport holders covered as outgoing international tourists?

Answer:
No ❌. Indian residents are not covered, even if they are travelling abroad. The benefit applies only to non-resident foreign tourists.

Q7: Is GST charged on goods sold by duty-free shops?

Answer:
No. Goods are supplied tax-free to outgoing international tourists, but GST may already have been paid on procurement (inward supplies), which is later refunded.

Q8: What type of GST refund is allowed?

Answer:
Only Central GST (CGST) paid on inward supplies of goods is refundable under this notification. Refund is subject to Rule 95A conditions.

Q9: Can airport retailers claim Input Tax Credit (ITC) instead of refund?

Answer:
No ❌. Since outward supply is tax-free, ITC is generally blocked. Instead, a refund mechanism is provided under Section 55.

Q10: What is Rule 95A of CGST Rules?

Answer:
Rule 95A lays down:
Procedure for refund
Documentation
Verification by authorities
Conditions for eligibility
Compliance with this rule is mandatory to claim refund.
👉 Need help filing GST refund applications?
🔗 https://finodha.in/gst-return-filing/

Q11: Does this refund apply to domestic airport retailers?

Answer:
No ❌. Only international airport departure area retailers beyond immigration are covered.

Q12: Does this notification impact suppliers to duty-free shops?

Answer:
Indirectly, yes. Suppliers must:
Issue proper tax invoices
Ensure GST is correctly charged
Maintain documentation for refund trail
👉 Ensure supplier-side GST compliance with Finodha:
🔗 https://finodha.in/gst-compliance/

Q13: Is GST registration mandatory for duty-free retail outlets?

Answer:
Yes. To claim refund under Section 55, the retail outlet must be GST-registered.
👉 Get GST registration support from Finodha:
🔗 https://finodha.in/online-gst-registration/

Q14: How does this notification benefit airport retailers?

Answer:
It:
Removes GST cost on inventory
Improves cash flow
Aligns Indian GST with global duty-free norms
Encourages foreign tourist spending

Q15: Who should carefully review Notification No. 11/2019?

Answer:
This notification is critical for:
Airport duty-free retailers
Airport retail operators
Luxury goods brands selling through airports
GST professionals handling refunds
👉 Get expert GST advisory from Finodha:
🔗 https://finodha.in/gst-compliance/