Customs Duty in Indian Rupees at Duty Free Shops at Airports
WHILE coming from abroad, if you buy goods from the Duty Free Shops at the International Airports in India, you are expected to pay in convertible currency and not Indian Rupees. However, you can pay up to Rs. 5000/- in Indian rupees.
According to RBI Regulations, any person resident in India is permitted to take outside India (other than to Nepal or Bhutan) or bring into India (other than from Nepal or Bhutan) currency notes up to an amount not exceeding Rs 25,000/-.
Now, the CBEC has decided that passengers shall be permitted to purchase goods at duty free shops in Indian rupees up to an amount not exceeding Rs 25,000/-. Board doesn't say what the limit is if you are coming from Nepal.
Recently I returned from Nepal and the Duty Free Shop in Delhi Airport allowed me to pay Rs. 10,000 in Indian Rupees and asked for the balance in Dollars. I told him that I didn't have any dollars. He offered me a solution - Pay through your International Credit or Debit card, which I did!
CBEC wants that:
1. Principal Commissioners / Commissioners of Customs to advise the Duty Free Shop operators of the revised permitted limits for purchase of goods in Indian currency at Duty Free shops.
2. Information relating to the use of Indian currency at duty free shops should be displayed at all DFSs.
3. It may be ensured that DFSs display the rate of exchange as published by the commercial banks for conversion of foreign currency or the rate of exchange notified by the CBEC on a fortnightly basis for import and export of goods.
4. Similarly, websites of DFS / Airports must be kept accurately updated with regard to the facility and limit in use of Indian currency for making purchases.
5. It may also be ensured that duty free shop operators are familiarized with the procedures for procuring excisable goods, duty free, from factories in terms of the procedure prescribed from time to time.
6. The display of prices of goods by DFSs in Indian Rupees should also be complied with at the earliest.
CBEC Circular No.31/2016-CUSTOMS., Dated: July 06, 2016