BUSINESSEconomic Times Industry · 2 hours agoLive
GST refund allowed for cancelled air tickets
Reported by Economic Times Industry, not nibnow. We are not the publisher of this story, only the source is.
WHY IT MATTERS
The ruling means passengers whose flights were cancelled can receive back the GST they paid, and airlines can recover tax credits they lost, affecting both consumer refunds and airline finances.
WHAT HAPPENED
A ruling from the GST Appellate Tribunal states that cancelled airline ticket refunds can be claimed. Singapore Airlines had submitted a total of eight GST refund claims for the period from October 2019 to March 2021. The airline returned fares and GST to passengers due to COVID-19 cancellations, but faced issues with tax credits.
WHAT TO WATCH
- •Watch for additional GST refund claims from other airlines facing similar COVID‑related cancellations
- •Monitor any guidance the tribunal issues on handling GST credits for future ticket refunds
- •Follow how the decision influences airline accounting practices for tax credits
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