GSTAT says airlines can refund GST on cancelled tickets
In short
GSTAT said airlines can refund GST to passengers when a ticket is cancelled and then claim that GST back from the government. In this case, a taxpayer had already paid GST on the ticket and later returned it to passengers.
The tribunal ordered the GST department to give the refund with interest. The report does not name the airline or say how much tax was involved.
What the reporting says
GSTAT ordered the GST department to refund GST with interest to a taxpayer after a cancelled airline ticket was later refunded to passengers. The publisher summary says the taxpayer had deposited GST on the ticket with the government and then refunded the tax to passengers when the ticket was cancelled. The reporting does not name the airline, the tax amount, or the date of the order.
Why it matters
GSTAT ruled in a cancelled-ticket GST case that the taxpayer should receive a refund with interest after depositing GST on an airline ticket and later refunding that GST to passengers. The summary indicates the tax had first been paid to the government and then passed back to customers when the ticket was cancelled. The source does not state the airline, the amount involved, or whether the ruling sets a broader precedent.