Mumbai airport: Duty-free shops fit for GST input tax credit refund

Observing that GST regime is based on 'one nation, one tax ory', Bombay High Court quashed a Maharashtra Sales Tax order that h refused refund of input tax credit to duty-free shops at Mumbai international airport.

ting that se shops are eligible to get refund of input tax credit on entire amount of Goods and Services Tax (GST) paid, high court said imposition of local taxes on se outlets would hamper foreign tre.

A division bench of justices Ranjit More and Bharati Dangre quashed and set aside January 10 order passed by Deputy Commissioner of Sales Tax (Mumbai) refusing to refund input tax credit to petitioner (owner of duty free shops in Mumbai International Airport Limited-MIAL) pursuant to sale of duty-free goods from shops at departure area of airport.

RE | Delhi Court Grants Bail To GST Inspector In Illegal Gratification Case

bench ted that previous order was arbitrary and against provisions of Article 286 of Constitution. Under this article, state shall impose tax on supply of goods that takes place outside of state territory and in cases where supply is me in course of import into India or in course of export out of India.

In its order dated October 7, high court bench ted that if a duty free shop, which caters to international passengers, is subjected to local taxes by state n price of goods, which are supposed to be free of taxes and duties, will go up.

"This would prevent duty free shops in India from competing with duty-free shops at international airports elsewhere in world. This will hamper and prejudicially affect our foreign tre, and augmentation and conservation of foreign exchange," court stated.

RE | GST Council Meet Highlights: Here's What Got Cheaper And Dearer

Challenging sales tax order, petitioner argued in high court that duty-free shops at Mumbai international airport cant be sdled with burden of taxes or restrictions.

petitioner h told court that y get refund of input tax credit pursuant to sales from ir or duty free shops in departure area of or international airports within India.

" GST regime is based on 'one nation, one tax ory'. authorities in state of Maharashtra cant give a discriminatory treatment, particularly when refund has been and is being granted in several or states," bench said in its order.

RE | GST Council: Tax On Caffeinated Drinks Hiked, Hotel Tariffs Reduced

RE | Automobiles GST Reduction In Hands Of Finance Minister: Nitin Gkari