GST Council’s New Initiative: Refunds Foreign Tourists E-Invoicing

E-invoicing to Facilitate GST Refunds for Foreign Tourists

📅 By Admin | September 11, 2024
📂 Categories: GST Recent News
⏳ 4 Min Read

The GST Council has introduced a crucial initiative allowing foreign tourists to claim GST refunds on goods purchased in India, which they take back to their home countries. This move aligns India with international standards where tax refunds on exports are available for tourists.

B2C E-Invoicing to Aid Refunds

The introduction of Business-to-Consumer (B2C) e-invoicing, currently voluntary, is pivotal in simplifying the GST refund process for foreign visitors. When foreign tourists purchase goods and export them back home, the Indian customs authorities at airports can now verify e-invoices to approve refunds. These goods are classified as exports, qualifying for GST refund claims.

Boosting Transparency and Reducing Tax Evasion

The primary objective of e-invoicing is to empower consumers to verify their purchases and invoices, promoting transparency. This measure also helps curb tax evasion by creating a traceable and accountable invoicing system. Verified e-invoices will be linked directly to the GST returns system, streamlining compliance and facilitating refunds more efficiently.

Simplifying the Process with E-Invoicing Portals

To make the process user-friendly, the GST authorities plan to set up a portal for generating and verifying e-invoices. This platform will not only benefit tourists but also ease the entire refund process, encouraging more foreign purchases and boosting tourism-related retail.

Revenue Secretary Sanjay Malhotra highlighted the dual benefits of this initiative, underscoring how it will not only assist foreign tourists but also enhance India’s tax transparency and compliance efforts.