Yes, you can do tax-free shopping in India, primarily through duty-free shops at international airports for departing passengers. While India does not have a fully streamlined nationwide VAT/GST refund system for tourists like some other nations, you can get refunds on Goods and Services Tax (GST) for specific, unused, and exported items.
India offers a vibrant and diverse shopping experience, and while general shopping includes GST (Goods and Services Tax), you can still enjoy duty-free shopping at international airports and shop smartly across the country.
Foreign nationals visiting India on tourist visas can claim refunds of IGST paid on their purchases of goods in India. The eligibility criteria for such refunds of IGST are: The person claiming the refund must be an international tourist as per Section 15 of the IGST Act.
The eligible individuals can get a refund after filing ITR. In addition, there is a defined claim refund process that can be done online for the benefit of swift processing.
You can claim a refund on the VAT return itself by completing Box 23 except in the case of appellate orders. In this case the tax department will issue a Form within 15 days of receipt of the appellate order. You have to confirm the claim on the same Form within 15 days of receipt of the Form.
GST law also provides for grant of provisional refund of 90% of the total refund claim, in case the claim relates for refund arising on account of zero rated supplies. The provisional refund would be paid within 7 days after giving the acknowledgement.
Who Can Claim a VAT Refund? In the USA, the opportunity to claim a VAT refund is generally reserved for foreign businesses and tourists who have incurred VAT on eligible expenses within VAT-imposing countries. US businesses may also seek VAT refunds from their business expenses in these countries.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
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2. A “resident and ordinarily resident” pays tax in India on his entire world income, wherever accrued or received. 3. A “non-resident” pays tax only on his taxable Indian income and his foreign income (earned and received outside India) is totally exempt from Indian taxes.
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These are the top ten countries for VAT refunds, along with what to expect when shopping, completing paperwork, and claiming your tax back.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.
The new refund formula in GST is based on the net input tax credit (ITC) method. It calculates the refund amount as the product of net ITC and turnover of zero-rated supplies divided by adjusted total turnover.
If you have already paid more taxes in the form of TDS or advance tax than required, you will receive a refund on duly filing ITR. You can check the refund status through NSDL portal by entering your PAN and assessment year. For income tax refund queries, you can contact 1800 103 0025, 1800 419 0025.
The Australian Government's Tourist Refund Scheme (TRS) allows international travellers to claim a refund on the Goods and Services Tax (GST) and Wine Equalisation Tax (WET). The government pays this on eligible purchases you make in Australia and take offshore when you meet certain conditions.