GST tribunal says airlines can claim tax refund if fare, GST returned to passengers
Reported by Economic Times Industry, not nibnow. We are not the publisher of this story, only the source is.
Airlines and other transport providers can recover goods and services tax paid on cancelled tickets, provided they prove the tax burden was not passed on to consumers. This ruling sets a legal precedent that could help other carriers process similar pandemic era claims.
GST Appellate Tribunal ruled that GST paid on cancelled airline tickets is refundable if conditions are met. Singapore Airlines successfully claimed refunds amounting to Rs 45,92,528 for flights cancelled due to COVID-19. The Tribunal highlighted that sufficient evidence was provided to demonstrate that tax incidence was not passed on to passengers. Taxpayers need to maintain robust documentation to satisfy requirements for refunds to be processed.
Goods and services tax tribunals handle disputes between taxpayers and tax authorities regarding indirect tax assessments and refunds. Tax refund claims typically require detailed financial documentation to prove that the economic burden of the tax was borne by the business rather than the end consumer.
- •Whether tax authorities appeal the tribunal decision in higher courts.
- •If other airlines file similar refund claims based on this ruling.