Goods & Service Tax (GST) 26 October 2026
GST Tribunal Rules Airlines Can Claim Refunds on Cancelled Tickets
The GST Appellate Tribunal has ruled that airlines are entitled to claim input‑tax refunds on GST paid for cancelled flight tickets, provided they have returned the passenger’s fare and the associated tax. The decision clarifies the refund process and ensures airlines can recover GST when full ticket amounts are reimbursed.
GST Appellate Tribunal decision: airlines may reclaim GST input tax on cancelled tickets if they refund both fare and tax.
- Refund eligibility requires full return of ticket price and tax.
- Applies to all domestic and international flight cancellations.
- Helps airlines recover GST that would otherwise be a loss.
The ruling provides clear guidance, streamlining the refund process and supporting airline cash flow during cancellations. Read more
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