Government exempts excise duty on indigenous goods sold at duty-free shops

In a bid to promote exports, the government Thursday exempted excise duty on indigenously produced goods sold at duty-free shops (DFS) at international airports.

"Government issued notification today (Thursday) so as to allow excise duty-free sale of goods manufactured in India to international passengers or crew arriving from abroad at the DFS located in the arrival halls of international airports," the finance ministry said in a statement.

"Directions have also been issued to specify the procedure for removal of the goods from the factory of production without payment of duty to godowns (warehouses) or retail outlets of DFSs and related matters."

According to the statement, passengers and crew coming from aboard were earlier entitled to a duty-free baggage allowance subject to the baggage rules, 1998.

"Now, a passenger arriving from abroad shall have the choice to buy either duty-free imported goods or duty-free indigenous goods within his overall permissible baggage allowance."