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GST refunds on cancelled air tickets may be available where...
GST refunds for cancelled air tickets remain available when passenger reimbursements defeat unjust enrichment and credit-note adjustment is unavailable.
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GST refunds on cancelled air tickets may be available where ticket, passenger, invoice, refund voucher, credit note and BSP records establish that the airline refunded both fare and tax and retained no amount. On those facts, unjust enrichment does not bar the refund. Where credit notes cannot be adjusted because no output tax liability remains after cancellations, refund may be claimed in FORM GST RFD-01 as excess payment of tax. For B2C passenger-ticket transactions, input tax credit reversal is not applicable where no recipient credit is involved; a later proviso requiring reversal of credit attributable to credit notes does not apply to earlier periods. Refund claims should consequently be processed with applicable interest.
GST refunds on cancelled air tickets may be available where ticket, passenger, invoice, refund voucher, credit note and BSP records establish that the airline refunded both fare and tax and retained no amount. On those facts, unjust enrichment does not bar the refund. Where credit notes cannot be adjusted because no output tax liability remains after cancellations, refund may be claimed in FORM GST RFD-01 as excess payment of tax. For B2C passenger-ticket transactions, input tax credit reversal is not applicable where no recipient credit is involved; a later proviso requiring reversal of credit attributable to credit notes does not apply to earlier periods. Refund claims should consequently be processed with applicable interest.
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