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Airlines Can Reclaim GST on Cancelled Tickets If Passengers Are Refunded, Tribunal Rules

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The GST Appellate Tribunal has ruled that airlines may claim GST refunds on cancelled flight tickets. The decision followed a case involving Singapore Airlines, which was permitted to reclaim Rs 45.92 lakh after showing that refunds had been paid directly to passengers. The tribunal stressed that airlines must supply thorough documentation proving the refund trail. The ruling covers eight claims filed for the period from October 2019 to March 2021, during the Covid-19 pandemic.

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