Notification No. 11/2019 - Union Territory Tax (Rate) Update

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Notification No. 11/2019 – Union Territory 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 21 of the Union Territory Goods and Services Tax Act, 2017 (14 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 union territory 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 - Union Territory Tax (Rate)

Q1: What is Notification No. 11/2019 - Union Territory Tax (Rate)?

Answer:
It allows duty-free retail outlets at international airport departure areas to claim refund of UTGST on goods supplied tax-free to outgoing international tourists.

Q2: From when is this applicable?

Answer:
From 1 July 2019.

Q3: Who can claim the refund?

Answer:
Only:
Retail outlets
Located beyond immigration counters
At international airport departure area

Q4: Can normal airport shops claim this benefit?

Answer:
❌ No. Only duty-free shops beyond immigration qualify.

Q5: Who is considered an outgoing international tourist?

Answer:
A person:
Not normally living in India
Staying less than 6 months
Leaving India after visit

Q6: Do these shops charge GST on sales?

Answer:
No. They make tax-free supply to eligible tourists.

Q7: What tax refund do they receive?

Answer:
Refund of UTGST paid on inward supply of goods sold duty-free.

Q8: Under which rule is refund processed?

Answer:
Under Rule 95A of CGST Rules, 2017.

Q9: Do duty-free shops need GST registration?

Answer:
Yes. They must maintain GST registration and compliance.
👉 Register here: https://finodha.in/online-gst-registration/

Q10: Do they need to file GST returns?

Answer:
Yes. Regular GST return filing is required.
👉 https://finodha.in/gst-return-filing/

Q11: What records must be maintained?

Answer:
Tourist passport details
Boarding pass copies
Sales invoices
Purchase invoices
Refund documents

Q12: Does this apply in all India?

Answer:
Specifically UTGST areas. Similar CGST rules apply nationwide.

Q13: Why did government introduce this?

Answer:
To:
Align with global duty-free systems
Support airport retail
Boost tourism
Improve competitiveness

Q14: What happens if goods are sold to Indian residents?

Answer:
Normal GST rules apply. Refund benefit not available.

Q15: How can Finodha help duty-free businesses?

Answer:
Finodha offers:
✔ GST Registration
✔ GST Return Filing
✔ Compliance
✔ Company Setup
✔ ROC filings
👉 https://finodha.in/gst-compliance/
👉 https://finodha.in/private-limited-company/

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