business
GSTAT allows GST refunds on cancelled airline tickets
GSTAT allows GST refunds on cancelled airline tickets in a ruling involving Singapore Airlines.
The Ernakulam bench of the GST Appellate Tribunal ruled on October 16 that airlines can claim GST refunds for cancelled tickets. Singapore Airlines is eligible for Rs 45,92,528 across eight claims from October 2019 to March 2021 after COVID-19 flight cancellations. The GSTAT ordered the revenue department to process the payment with interest within two weeks because the airline proved it returned all fares and taxes to passengers.
Latest updates
GSTAT allows GST refunds on cancelled airline tickets
The ruling came in the case of Singapore Airlines Ltd. v/s Kochi Commissioner of CGST & CE. The Ernakulam bench of the GSTAT stated that refunds are permissible provided there is sufficient evidence of the return of funds. Airlines must provide supporting documents to prove the fare and GST were refunded to the passenger. This decision clarifies the tax treatment of cancelled flight bookings.