GST refund allowed for cancelled air tickets

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 the passengers and has supporting documents to prove it, a GST Appellate Tribunal has ruled.

Ruling in the case of Singapore Airlines Ltd. v/s Kochi Commissioner of CGST & CE, Kochi, Ernakulam bench of GST Appellate Tribunal (GSTAT) has decided that there is "sufficient evidence" to ensure that the refund of cancelled tickets has reached the respective passengers directly and there is "no passing" of the incidence of tax.

The GSTAT directed the revenue department to process the refund claim of the airline within two weeks and make payment along with interest.


The case relates to eight GST refund claims totalling ₹4592,528 by Singapore Airlines for October 2019 to March 2021. During the period, owing to COVID-19, the airline had to cancel flights and returned fares and GST to passengers. However, it could not adjust the credit notes against output tax.

The GST joint commissioner had rejected refund claims, following which the appellant approached the GSTAT.