Airlines can claim refunds of Goods and Services Tax (GST) paid on cancelled tickets if they have returned both the ticket fare and the tax amount to passengers and possess documents substantiating the refunds, the GST Appellate Tribunal has ruled. The decision clarifies the conditions under which carriers can recover tax paid on bookings that are subsequently cancelled.
\n\nThe ruling makes it clear that airlines seeking a GST refund must establish that the amount collected from passengers, including the tax component, has been returned. Supporting records demonstrating the cancellation and refund transactions are essential to substantiate such claims.
\n\nRuling in the case of Singapore Airlines Ltd. v/s Kochi Commissioner of CGST & CE, Kochi, Ernakulam bench of GST Appellate Tribunal (GSTAT) has decided that there is "sufficient evidence" to ensure that the refund of cancelled tickets has reached the respective passengers directly and there is "no passing" of the incidence of tax.
\n\nThe GSTAT directed the revenue department to process the refund claim of the airline within two weeks and make payment along with interest.
\n\nThe case relates to eight GST refund claims totalling Rs 45,92,528 by Singapore Airlines for the period between October 2019 and March 2021. During the…
Original source: https://www.timesnownews.com/business-economy
