Seeking to promote brand India, the government on Thursday allowed tax-free sale of Indian manufactured goods at duty free shops (DFSs) located at international airports for passengers.
"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," an official notification said.
As per the notification excise duty-free sale of goods manufactured in India is allowed to international passengers or members of crew arriving from abroad at DFSs located in the arrival halls and to passengers going out of India at departure halls of international airports in the country.
At present, DFSs located in the arrival halls sell duty-free imported goods while indigenous goods sold are not duty-free.
It is in this context that representations were received requesting to permit excise duty-free sale of goods manufactured in India both on the arrival side as well as the departure side so as to ensure parity with the imported goods and to promote brand India, it said.
The government held discussions with the different stakeholders and decided to permit excise duty-free sale of indigenous goods to passengers or members of crew arriving from abroad within the overall permissible baggage allowance and to permit excise duty-free sale of indigenous goods to passengers going abroad, it added.