If you’re an international traveller in India, fill your bags with goodies because we have news for you. Foreign travellers in India will soon be able to claim tax refunds under the proposed Goods & Services Tax category. This comes as preparations are being made to roll out the Goods & Services Tax in 2016.
How does this affect exporters?
The new move to allow foreign tourists to claim tax refunds on purchases of goods in the country could mean the loss of access to duty-free imported products for exporters.
They will need to make an upfront payment of the Goods & Services Tax which will be refunded later.
What does this mean for the export business?
Payment of the Goods & Services Tax, upfront by the exporters in order to receive imported products could mean considerable cash flow issues for export businesses.
Additional Reading: All About the Goods & Service Tax
A transparent system for trade
While the GST promotes an easy-to-use and transparent system of business operations in India, anyone who is involved in the supply of goods and services would need to be registered on the online portal established by the Goods & Services Network.
Additional Reading: 10 Countries Indians Can Visit Without A Visa
The fact that foreign travellers are going to be allowed to claim tax refunds on the purchases that they make in India, is a clear indication that the Indian government is serious about rolling out the Goods & Services Tax in 2016.
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