TMI BlogRefund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange.X X X X Extracts X X X X X X X X Extracts X X X X ..... retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange. The Government vide Notification (11/2019) No. FD 48 CSL 2017 dated 03.07.2019 issued in exercise of powers under section 55 of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGST Act ) has notified that the retail outlets established at departure area of the international airport beyond immigration counters shall be entitled to claim refund of applicable State tax paid by them on inward supplies of indigenous goods received by them for the purposes of subsequent supply of goods to outgoing international tourists i.e. to a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curement of imported / warehoused goods is governed by the provisions contained in Customs Act. The procedure and applicable rules as specified under the Customs Act are required to be followed for procurement and supply of such goods. 5. Procurement of indigenous goods: - Under GST regime there is no special procedure for procurement of indigenous goods for sale by DFS or DPS. Therefore, all indigenous goods would have to be procured by DFS or DPS on payment of applicable tax when procured from the domestic market. 6. Supply of indigenous goods by DFS or DPS established at departure area of the international airport beyond immigration counters (hereinafter referred to as the retail outlets ) to eligible passengers:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... data shall be kept updated, accurate and complete at all times by such retail outlets and shall be available for inspection/verification of the proper officer of State tax at any time. The electronic records must incorporate the feature of an audit trail, which means a secure, computer generated, time stamped record that allows for reconstruction of the course of events relating to the creation, modification or deletion of an electronic record and includes actions at the record or system level, such as, attempts to access the system or delete or modify a record. 8.2. Invoice-based refund: It is clarified that the refund to be granted to retail outlets is not on account of the accumulated input tax credit but is refund based on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he KGST Rules ) as inserted vide notification No. 31/2019-Central Tax dated 28.06.2019, the retail outlets are required to apply for refund on a monthly or quarterly basis depending upon the frequency of furnishing of return in FORM GSTR-3B. Till the time the online utility for filing the refund claim is made available on the common portal, these retail outlets shall apply for refund by filing an application in FORM GST RFD-10B , as inserted vide Notification (4-1)/2019) No. FD 47 CSL 2017, dated 26.07.2019, manually to the jurisdictional proper officer. The said refund application shall be accompanied with the following documents: (i) An undertaking by the retail outlets stating that the indigenous goods on which refund is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R-2A . The proper officer may rely upon FORM GSTR-2A as an evidence of the accountal of the supply received by them in relation to which the refund has been claimed by the retail outlets. Normally, officers are advised not to call for hard copies of invoices or details contained in Annexure A. As clarified in clause (v) of Para 8.5 above, it is reiterated that the retail outlets would be required to submit hard copies of only those invoices of inward supplies that have not been reflected in FORM GSTR-2A. 9.3. The proper officer shall issue the refund order manually in FORM GST RFD-06 along with the manual payment advice in FORM GST RFD-05 for each head i.e., Central tax/State tax/Union territory tax/lntegrated tax/Compensat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effective from 01.07.2019 and would be applicable in respect of all supplies made to eligible passengers after the said date. In other words, retail outlets would be eligible to claim refund of taxes paid on inward supplies of indigenous goods received by them even prior to 01.07.2019 as long as all the conditions laid down in Rule 95A of the KGST Rules and this circular are fulfilled. 11. Difficulty, if any, in implementation of the above instructions may be brought to the notice of this office. (SRIKAR M.S.) Commissioner of Commercial Taxes (Karnataka) Bengaluru - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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