GSTAT rules Singapore Airlines eligible for GST refund on cancelled tickets

The Goods and Services Tax Appellate Tribunal ruled that airlines can claim a refund of Goods and Services Tax paid on cancelled tickets if they return both the fare and the tax amount to passengers and provide supporting documentation. In a case involving Singapore Airlines, the tribunal set aside an earlier order, finding the airline eligible for a refund of GST collected from passengers. The claims concerned eight instances totaling ₹45,92,528 for flights cancelled during the Covid-19 pandemic.

The ruling establishes a precedent allowing airlines to recover GST paid on cancelled tickets, provided the full amount is returned to the passenger. This decision allows airlines to adjust credit notes against their output tax liability, potentially improving their financial standing.