New Delhi, May 25 (KNN) In a relief to  pockets of all those people buying perfumes, chocolates and other items from duty-free stores, the Allahabad High Court ruled that GST will not be levied on purchases made at arrival or departure terminals.

The court has held that the Goods and Services Tax (GST) will not be levied as the goods never cross the customs border. Moreover, passengers carry these items as their personal effect. This order came in response to public interest litigation (PIL) that the exchequer is losing revenue, according to a ToI report.

It may be noted that there have been multiple rulings on payment of GST at duty-free shops which has created a sense of confusion among those buying perfumes or chocolates from these stores.

This ruling by Allahabad high court is similar to the one by Karnataka high court where in case of Flemingo duty-free shop, it was held that sale or purchase by such stores would be a transaction in the course of export or import, as reported by ToI.

The Authority for Advance Ruling (AAR) had held that the supply of goods from duty-free shops at Delhi International Airport to passengers going abroad is liable to goods and services tax. However, alcohol is outside the ambit of GST.