Duty free shops to display prices in Rupee (INR) only

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). The Central Board of Excise and Customs (CBEC) through a circular said that, the prevailing exchange rates will be applicable if purchases are made in foreign currency. Currently, the 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 the transaction fees and other levies. Thus, 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.

In order to ensure effective implementation of the new norms, the duty free shops have been asked mandatorily, to display the price of all goods on sale in Indian rupees only. However, the ceiling for an incoming passenger at the arrival terminal has been retained at Rs 25,000. But, the CBEC further said that the payments through an INR credit/debit card at duty free shops located in the departure hall shall be without limit for an outgoing passenger.

Furthermore, there will be a ceiling of payment in cash at Rs 25,000 at duty free shops. As per the CBEC, passenger making payments through credit/debit cards 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.

Source: The Financial Express

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