GST Tribunal orders refund of tax on cancelled Singapore Airlines tickets

The GST Appellate Tribunal's Ernakulam bench ruled in favor of Singapore Airlines Ltd. in its dispute with the Kochi Commissioner of CGST & CE, confirming that refunds for cancelled flights during the COVID-19 period were directly returned to passengers without retaining GST. The tribunal directed the revenue department to process eight refund claims amounting to Rs 45,92,528, plus interest, within two weeks. The airline had previously been denied refunds by the GST Joint Commissioner after being unable to offset credit notes against output tax.

Legal commentators stressed that taxpayers must maintain detailed passenger-level records to demonstrate the absence of unjust enrichment. The decision underscores the importance of holistic document review by tax officials rather than technical rejections. AMRG Global Managing Partner Rajat Mohan noted that the case hinged on clear evidence linking invoices, credit notes, and refunds.