Cancelled flight ticket? Airline to refund & claim it

The Goods and Services Tax Appellate Tribunal (GSTAT) recently decided that airlines must refund GST collected on cancelled air tickets and then request a refund from the government. This ruling came after several appeals from airlines struggling to return both ticket refunds and the GST collected, as the GST had already been paid to the government.

The tribunal's decision came after considering issues with proving the refund was actually given to passengers and that the time limit for such refunds had passed. This judgment provides clarity on how airlines should handle GST on cancelled tickets, potentially reducing financial burdens and encouraging more transparent refund practices.