How GST In India Impacts Foreign Tourists And NRIs

The new tax reform implemented from 1st July, 2017 has posed a challenge in a lot of sectors but at the same time has created numerous business opportunities.
The augmented bill after going through layers of vendors and hence taxes have been reduced to a single taxation system for goods and services, allowing transparency, reduction in price gap, and less confusion (eventually).

This has been advantageous to the Indian consumers in certain sectors, but has affected some businesses as their cost conservative market is decreasing due to change in prices. Export business has been impacted all the same, reaching NRIs and coaxing them to pay closer attention to Indian market. NRIs involved in export business will be at a better position, since GST is not applied to goods and services.

This change has affected not just the Indian population but foreign tourists in India as well. A charge would be levied on all the goods purchased and services availed during the stay in India, for not more than 6 months. However, if these goods are not consumable, the foreigners including NRIs can get a refund of the GST paid on their way back for all the goods they take with them without much of a hassle.

What is the procedure for claiming a GST refund?

  • The NRI visitor or foreign tourist can file an application electronically in Form GST RFD-01 through the GST Common Portal or through a GST Facilitation Center;
  • Have and record all invoices pertinent to the purchase made.
  • The Invoice number may be asked at various junctures of filing for the refund as well as at the time of the actual claiming of the refund.
  • An acknowledgement of the refund application is provided within 14 days, if application was accepted.
  • If not, the application is sent back with deficiencies. The requester has to fulfill the requirements and refile.
  • The refund is granted within 60 days of filing.
  • Alternately, the visitor can also take the required paperwork to a designated GST facilitation center at the exiting airport and claim a refund with all paperwork in tow, provided that facility is a registered for this scheme.

While all indicators suggesting the benefits of GST bill are promising towards the NRI, and its successful implementation would give a strong signal to NRI investors about India’s strong ability to support businesses, there is also the downside of levying taxes on goods and services that target the NRI specifically.

  • As GST is implemented sending money home would become costlier.
  • The Indian Government will levy a 12.36% service tax on fee or commission paid by agents for facilitating remittances.

We hope this helps all visitors travelling to India to explore the most diversified nation in terms of weather, nature, people, culture and everything around it by increasing savings on travel cost.

Atithi Devo Bhav!

India, Paving Ways For Business

Travelling for business ideally shouldn’t be that difficult to maneuver. For some countries it’s fairly convenient to travel to certain nations for business, depending on their foreign and trade policies; however, for others it’s a pretty difficult task. As of now APEC business travel card (ABTC) is one such privilege for APEC (Asia-Pacific Economic Cooperation) economies which allows expedited clearance through designated ABTC lanes and other painless travel procedures. However, India is not a part of APEC nations, and so Indian businessmen cannot practice the same while traveling to APEC nations.

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Celebrity Visa Hassles & Solutions

We have heard of many incidents of being detained on airport by authorities due to incomplete paperwork. Every country has its own rules and regulations, and you are permitted to enter the country only if you have fulfilled all the formalities, otherwise you will be asked to step aside for additional checks. Let’s see some case scenarios and understand how they could have been avoided.

Case I: Ustad Amjad Ali Khan

Sarod maestro Ustad Amjad Ali Khan’s visa application to the UK was rejected by the British High Commission in Delhi. Continue reading “Celebrity Visa Hassles & Solutions”

Canada! The Next Destination For Immigrants

Canada has always been a country that attracted immigrants, and with the current affairs of the world it is becoming most suitable country for immigration and settlement. So, what makes Canada an ideal place to migrate? One of the many reasons for high immigration influx in Canada is that it has something to offer to everyone from every category, skills and occupation. Canada is very liberal with its views on refugees and religions, it is always ready to accept crisis hit people from every country to be a part of its ecosystem and evolve there, this too adds to the flow of inbound migration.

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Visa problems? You are not alone!

“You don’t need visa when you’ve got santa.”

Our friend thought the same thing and traveled to other country, had to spend few days on airport before he was deported back.

Well, unawareness (and sometimes overconfidence on your passport) about visa processes may put you in situations that are frustrating. At times, even with all the preparation and knowledge you may face a problem that is not anticipated. And believe us, you are not alone. Continue reading “Visa problems? You are not alone!”

How to apply for passport in India?

I’d rather have a passport full of stamps than a house full of stuff! – Anonymous

We all want this to happen to us, don’t we? It is always better to wander and experience than to stay and only dream about it. In the era where everyone talks about being a global citizen, passport has become an essential thing in life. It is one of the most important form of identification. Passport is the biggest proof of citizenship, every person should have it. With the elevated security measures now a days, it is next to impossible to travel to a different country without a passport.

In this blog, Visa Guide team has jotted down steps to apply for an Indian passport online. Mr.Prime Minister dreams of digital India, we are here to help achieve that goal and assist every citizen of this country.

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