Income Tax 26 October 2026
GST Tribunal Enables Airline Ticket Refund Claims
The GST Appellate Tribunal has directed India’s revenue department to process tax refunds for airlines when cancelled tickets are refunded to passengers, provided both the fare and GST are returned. The department must complete the claim within two weeks and include interest, streamlining refunds for carriers and passengers alike.
Key Decision
- The GST Appellate Tribunal (GSTAT) ordered the revenue department to settle airline tax refund claims within two weeks, adding interest.
- Refund eligibility applies only when the airline returns both the ticket fare and the GST to the passenger.
Implications
- Airlines can now recover GST paid on cancelled tickets, improving cash flow.
- Passengers benefit from quicker, transparent refunds.
For full details, see the original article.
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