Under the revised draft IGST Law, IGST paid by an outbound tourist on purchase of goods can be claimed as refund.
Section 20 (1) reads “The IGST paid on any supply of goods to outbound tourist shall be refunded, in the manner and subject to such conditions and safeguards as may be prescribed, if such goods are taken out of India.”
As a practice under International VAT laws, a tourist visiting their country and shopping can claim refund of VAT paid on goods bought. Generally, such refund is subject to certain conditions e.g. Refund could be eligible only if you shop over a prescribed limit. Limit can vary for products or brands.
Proposed IGST Law also makes room for certain restrictions and conditions associated with claiming refund. One such logical condition is that goods should have been procured from a registered taxable person (Registered person would have charged tax and paid).
Section 20(2) reads “The refund under sub-section (1) shall be allowed only on such supply of goods that is procured from a registered taxable person who satisfies the conditions and complies with the requirement, including relating to issue of invoice in the prescribed manner.”
Detailed procedure and conditions of refund would be clear once attached rules and notifications are out.