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

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Notification No. 11/2019 - Integrated Tax (Rate): Seeks to exempts any supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist.

[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 sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, and on the recommendations of the Council, hereby exempts any supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist, from the whole of the integrated tax leviable thereon under section 5 of the Integrated Goods and Services Tax Act, 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. The notification shall come into force with effect from the 1^st day of July, 2019.

(Ruchi Bisht)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 11/2019 - Integrated Tax (Rate)

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

Answer:
It is a GST notification that fully exempts IGST on goods sold by duty-free retail outlets at international airports to outgoing international tourists, effective from 1 July 2019.

Q2: Which legal provision empowers this exemption?

Answer:
The exemption is issued under Section 6(1) of the IGST Act, 2017, which allows the government to exempt supplies in public interest on GST Council recommendations.

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

Answer:
An outgoing international tourist is a person:
Not normally resident in India
Visiting India for not more than 6 months
Entering India for legitimate non-immigrant purposes
This definition is clearly provided in the Explanation to Notification No. 11/2019.

Q4: Are Indian passport holders eligible for this exemption?

Answer:
❌ No. Indian residents and Indian passport holders do not qualify as outgoing international tourists under this notification.

Q5: Does this exemption apply to all airport shops?

Answer:
No. The exemption applies only to retail outlets located beyond immigration counters in the departure area of international airports.

Q6: Is GST exemption available on services like lounge access or spa services?

Answer:
❌ No. This notification only covers supply of goods, not services.

Q7: Can duty-free shops claim Input Tax Credit (ITC)?

Answer:
No. Since the outward supply is exempt, ITC is not available under Section 17(2) of the CGST Act.
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Q8: How should duty-free shops report these supplies in GST returns?

Answer:
Such supplies must be:
Reported as exempt supplies in GSTR-1
Reflected correctly in GSTR-3B
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Q9: Is e-invoicing required for these exempt sales?

Answer:
Currently, duty-free exempt supplies are outside e-invoicing scope, but businesses must monitor turnover-based compliance updates.

Q10: What happens if goods are sold before immigration counters?

Answer:
Such sales will not qualify for exemption and IGST will be applicable at normal rates.

Q11: Does this notification impact GST registration requirements?

Answer:
No. Duty-free shops must still be GST-registered even though supplies are exempt.
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