New Delhi: After the Authority for Advanced Ruling (AAR) ruling on duty-free shops, the Madhya Pradesh High Court has also ruled out GST exemption on such supplies at airport by Indian manufacturers.
With this, trader supplying goods to duty-free shops at the airport can’t be exempted from paying the GST as the supply isn’t a form of export, the court order said.
It said “The petitioner is selling to a person, who is having duty-free shop (to a duty-free operator), which is located in India as per the definition clause as contained under the GST Act.”
The petitioner who wanted to supply goods to duty-free shops situated in the duty-free area at international airports was aggrieved by the fact that the benefit available to him under the erstwhile central excise regime (when goods supplied to such shops were exempt from the excise duty) was not available to him under the goods and services tax (GST) regime.
Clarifying on this, the court order said “Undisputedly, in light of the definition as contained under the IGST Act, 2017 a duty free shop situated at the airport cannot be treated as territory out of India. The petitioner is not exporting the goods out of India. He is selling to a supplier, who is within India and the point of sale is also at Indore as the petitioner is receiving price of goods at Indore.”
26/12/18 KNN
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With this, trader supplying goods to duty-free shops at the airport can’t be exempted from paying the GST as the supply isn’t a form of export, the court order said.
It said “The petitioner is selling to a person, who is having duty-free shop (to a duty-free operator), which is located in India as per the definition clause as contained under the GST Act.”
The petitioner who wanted to supply goods to duty-free shops situated in the duty-free area at international airports was aggrieved by the fact that the benefit available to him under the erstwhile central excise regime (when goods supplied to such shops were exempt from the excise duty) was not available to him under the goods and services tax (GST) regime.
Clarifying on this, the court order said “Undisputedly, in light of the definition as contained under the IGST Act, 2017 a duty free shop situated at the airport cannot be treated as territory out of India. The petitioner is not exporting the goods out of India. He is selling to a supplier, who is within India and the point of sale is also at Indore as the petitioner is receiving price of goods at Indore.”
26/12/18 KNN
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