GST Appellate Tribunal allows airlines GST refunds on canceled tickets
Good news for travelers and airlines: the GST Appellate Tribunal has ruled that airlines can claim GST refunds on flight tickets they cancel, as long as they return the full fare and tax to passengers.
This decision came after Singapore Airlines showed it had refunded everything directly to its customers.
Paperwork crucial, Singapore Airlines ₹45.92L
Thanks to this ruling, Singapore Airlines will soon get back ₹45.92 lakh in GST refunds for past canceled flights.
The tribunal also made it clear: keeping solid paperwork is key when claiming these refunds.
Experts like Rahul Shekhar, partner for indirect tax at Nangia Global, say all documents should be checked together, not in isolation, while AMRG global managing partner Rajat Mohan recommends airlines keep detailed records, especially for tickets sold through agents, to avoid missing out on future refunds.