Duty Free Shop in India

The finance ministry has directed all duty free shops at international airports to display price of items only in rupees and accept card payments in the Indian currency (INR).

Prevailing exchange rate will be applicable if purchases are made in foreign currency, the Central Board of Excise and Customs (CBEC) said in a circular.

Currently, price of goods sold at duty free shops at international passenger terminals are displayed in US dollars and the forex conversion charges are borne by the passengers along with transaction fee and other levies.

“In view of the Foreign Trade (Exemption in application of Rules in certain cases) Order 2017 and clarification of RBI, it has been decided to extend the facility of payments in Indian rupees, through INR debit cards or credit cards at Duty Free Shops, without any need for conversion of foreign currency into Indian Rupees,' the circular said.

In order to ensure effective implementation of the new norms, it said, the duty free shops 'shall henceforth, mandatorily display the price of all goods on sale in Indian rupees only'.

The ceiling for an incoming passenger at the arrival terminal has been retained at ₹ 25,000.

'However, payments through a INR credit card or debit card at duty free shops located in the departure hall shall be without limit for an outgoing passenger,' CBEC said.

There will be, however a ceiling of payment in cash at ₹ 25,000 at duty free shops.

“Duty  Free  Shops  shall  ensure  that passenger  making payments through an INR credit/debit card are not subject to paying for merchandise in foreign currency and  accordingly  do  not have to  bear any attendant  charges  for  conversion  of foreign exchange,” the circular further said.