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GSTAT allows GST refund on cancelled air tickets if fare, taxes returned to passengers
BusinessLine 1 hr ago·25 Oct 2026, 9:02 am
The Goods and Services Tax (GST) Appellate Tribunal (GSTAT) has ruled that passengers are eligible for a GST refund on cancelled air tickets if the airline has fully returned the fare and taxes. This decision is based on a specific case involving Singapore Airlines, where the tribunal found that the airline's failure to refund taxes constituted a supply of services.
This ruling is significant for the travel industry, as it clarifies the legal position on tax refunds. For investors, it highlights the operational risks airlines face regarding passenger refunds and compliance with tax laws. It also sets a precedent that could influence how other airlines handle similar refund claims.
Investors should watch for how this ruling impacts the refund policies of major airlines. It may lead to increased administrative costs for airlines to ensure compliance with these new guidelines. Furthermore, it could affect the competitive landscape if airlines adjust their pricing strategies to account for potential tax liabilities.
Excerpt from BusinessLine
GST paid on cancelled airline tickets can be claimed as a refund if the airline has returned both the fare and GST to the passengers and has supporting documents to prove it, a GST Appellate Tribunal has ruled. Ruling in the case of Singapore Airlines Ltd. v/s Kochi Commissioner of CGST & CE, Kochi, Ernakulam bench of…Read the original at BusinessLine
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