The GST Appellate Tribunal (GSTAT) at Ernakulam has allowed Singapore Airlines Ltd refunds of GST on cancelled air tickets, where the airline returned both the fare and the tax to passengers. The order is dated 16 October 2026 and was reported by PTI on 25 October. Spectate Media has not seen the order and relies on the PTI report. The report does not cite specific sections of the CGST Act.
The case
Singapore Airlines filed eight refund claims totalling ₹45,92,528 for the period October 2019 to March 2021. It had cancelled flights during COVID-19 and returned fares and GST to passengers, but could not adjust the resulting credit notes against its output tax, so it sought refunds. The GST Joint Commissioner had rejected the claims. The tribunal set that order aside in the case titled Singapore Airlines Ltd v Commissioner of CGST and Central Excise, Kochi.
What the tribunal held
The tribunal held the airline was eligible for a refund of GST it had collected and paid to the government, then refunded in full to passengers after cancellations under a Supreme Court order. It found sufficient evidence that the refunds reached passengers directly, so the burden of the tax was not passed on. That is the unjust-enrichment test. The revenue department has two weeks to process the claim, with interest.
The conditions
The refund is available only where both fare and GST were returned to passengers and the airline holds documents proving it. Tax advisers quoted in the report said the case turned on evidence. Rahul Shekhar of Nangia Global advised taxpayers to keep strong documentation. Rajat Mohan of AMRG Global said the decision rested on passenger-level records linking invoice, credit note, refund and settlement, and warned that taxpayers unable to build that trail, especially for agent-sold tickets, should not expect the same result.
Key numbers
- Refund claims allowed: 8 (October 2019 to March 2021)
- Amount: ₹45,92,528 (About ₹45.92 lakh)
- Processing deadline: Two weeks (With interest)
- Order date: 16 October 2026 (Reported 25 October)
What boards and CFOs should note
Three points. First, a tribunal order binds the parties to the case, and the report does not say whether the department will appeal. Second, the refund depends on proving that nothing was passed on to anyone else. Third, finance teams that issued credit notes for cancellations may want to check whether their records link each refund to a passenger and an invoice. This is general information, not tax advice.
Source: Business Standard (PTI), 25 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
