GST Appellate Tribunal grants GST refund to Singapore Airlines for cancelled tickets with proof of passenger repayment

Key facts

• The GST Appellate Tribunal (GSTAT), Ernakulam bench, ruled that GST paid on cancelled airline tickets can be refunded if the airline has returned both fare and GST to passengers with supporting documents.
• The ruling came in the case of Singapore Airlines Ltd versus Kochi Commissioner of CGST & CE, involving eight GST refund claims totalling ₹45,92,528 for the period October 2019 to March 2021.
• The airline had cancelled flights and returned fares and GST to passengers during the Covid-19 period in line with a Supreme Court order, but could not adjust the credit notes against output tax.
• The GSTAT, in its order dated October 16, set aside the Joint Commissioner's rejection and directed the revenue department to process the refund within two weeks along with interest.
• The Tribunal found sufficient evidence that refunds reached passengers directly, with no passing of the incidence of tax and no unjust enrichment.