Refunds of taxes on items purchased in India may also be available to foreign visitors.

To attract tourists from abroad and entice them to spend more money there, the tourism and export businesses are pressing for tax refunds to foreign visitors on purchases made outside of India, similar to the policies in the UK, UAE, and Singapore.

Industry leaders and analysts claimed that although the Tax Refund for Tourists plan is provided for in Section 15 of the IGST Act, 2017, it has not yet been put into effect. Industry organisations have collectively addressed the matter in advance of the Union budget for 2023–2024, according to Jyoti Mayal, vice chairman of the Federation of Associations for Indian Tourism and Hospitality.

Ajay Sahai, director general of the Federation of Indian Export Organizations, suggested that in order to develop the tourism and lifestyle export industries, the government should operationalize tax refunds to travellers. “Similar VAT/GST return schemes for visitors have already been adopted in a number of countries, including competitive retail markets such as Singapore, China, Thailand, and Dubai,”