An Indian tax tribunal has allowed a GST refund claim by Singapore Airlines for cancelled tickets after finding evidence that the airline had returned both fares and tax to passengers.
GST refund claim followed pandemic cancellations
The case involved eight claims totalling ₹4,592,528 for the period from October 2019 to March 2021. Singapore Airlines cancelled flights during the COVID-19 pandemic and returned fares and goods and services tax to passengers, but could not adjust the credit notes against its output tax.
A GST joint commissioner rejected the claims, prompting the airline to appeal to the GST Appellate Tribunal.
Tribunal orders claim to be processed
The tribunal’s Ernakulam bench found sufficient evidence that refunds for the cancelled tickets had reached the passengers and that the incidence of tax had not been passed on.
It directed the revenue department to process the airline’s claim within two weeks and make payment with interest. The ruling establishes that a claim can be made where the airline has returned both the fare and GST and has supporting documentation.
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