New Delhi: GST paid on cancelled airline tickets can be claimed as a refund if the airline has returned both the fare and GST to passengers and has supporting documents to prove it, the GST Appellate Tribunal (GSTAT) has ruled, PTI reported.

Source: PTI via The Hindu BusinessLine

Ruling in Singapore Airlines Ltd versus the Kochi Commissioner of CGST and Central Excise, the Ernakulam bench of GSTAT said there was sufficient evidence that refunds of cancelled tickets had reached passengers directly and there was no passing of the incidence of tax, PTI reported. The tribunal directed the revenue department to process the refund claim within two weeks and make payment along with interest.

Source: PTI via The Hindu BusinessLine

Rs 45,92,528Eight GST refund claims by Singapore Airlines, Oct 2019-Mar 2021 — yaani Rs 45.92 lakh, about Rs 0.46 crore
2 weeksTime directed for the revenue department to process the claim, with interest

The case relates to eight refund claims totalling Rs 45,92,528 for the period between October 2019 and March 2021. During the Covid-19 pandemic the airline cancelled flights and returned fares and GST to passengers, but could not adjust the credit notes against output tax, PTI reported. The GST Joint Commissioner had earlier rejected the claims, after which the airline approached GSTAT, which set aside that order in its October 16 ruling.

Source: PTI via The Hindu BusinessLine

BizzBuzz reported the same ruling and quoted Nangia Global indirect tax partner Rahul Shekhar saying GST should not become a cost when a transaction is cancelled and the tax collected is fully refunded to customers, while AMRG Global managing partner Rajat Mohan said the refund was allowed as excess tax payment where the business had repaid customers but had no outward tax liability against which to adjust the credit note.

Source: BizzBuzz