Mumbai: In major relief to duty free shops, the Bombay High Court has ruled that goods and services tax (GST) cannot be levied on products sold at the duty free shops in Mumbai airport. The two judge bench observed that the if duty free shops are subjected to local taxes, the tax burden will increase and price of the goods, which are supposed to be free of taxes and duties, would go up. The judgment would have wider implications as it could set precedent for abolition of local duty on products sold through duty free shops across the country. The judges further said that they find merit in the contention of the petitioner that arriving passenger's baggage is exempt from the integrated tax. "In view of the above exemption read with the duty free allowance available under the Baggage Rules applicable to arriving passengers, neither customs duty (upto the permitted baggage allowance) nor IGST is levied on such goods," it said.

Source: Mint October 11, 2019 03:22 UTC