No GST Imposition on Goods Sold at Duty-Free Shops at Mumbai Airport
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The Bombay High Court has declared a judgement saying duty-free shops in the Mumbai airport, Chhatrapati Shivaji Maharaj International Airport, cannot levy goods and services tax (GST) on the products it sells. 

The two-judge bench considered the fact that these shops are subject to local taxes; levying GST on their products will increase the tax burden and lead the paths to higher prices of goods that are supposed to be tax- and duty-free. 

The judgement referred to Article 286 of the Indian Constitution. It stated that the supply made in the course of import to India or export out of India cannot be subjected to any tax. The current judgement can have a wider implication as it reserves the scope to abolish local taxes applicable to products sold at duty-free shops across the

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The goods neither pass the customs frontier nor are they meant for home consumption by duty-free stores. The petitioner appealed about the arriving passengers’ baggage is exempt from the integrated tax. The judges found the petitioner’s contention made sense. Considering the above exemption and the duty-free allowance along with the Baggage Rules applicable to arriving passengers, neither IGST nor customs duty must be levied on such goods.

Import of goods by arriving passengers as the passenger baggage is categorised as exempt supply under GST. Therefore, IGST will not be applicable by both duty-free shops on import and the arriving passengers.

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