The Authority for Advance Ruling (AAR) has issued a notice regarding the Duty-Free shops in Delhi. Asking the shops to pay GST, AAR underlined that Duty-Free shop outlets at Delhi International Airport, were not exempted from the GST regime. However, prior to GST rollout, such shops were free from duties such as CST and VAT. It was considered so, because such shops were functioning in places, which are beyond the customs frontiers of India. Revising the decision, AAR officials maintained that since such shops were within the territory of India, would naturally come under the purview of GST.
The decision received criticism from Duty-Free shop owners, stating that it would neutralize the advantages being given to such shops. Since the shops would have to pay tax, they would be at par with those of the ones, functioning outside the Airport. It was showcasing Section 2(5) in IGST Act and Section 2(27) of the Customs Act, which AAR decided levying GST from Duty-Free shops functioning in Delhi International Airport.