New Delhi: For some of those who booked their flights on or before March 31, 2018 cancelling the tickets after September 30 would mean losing more money than usual as airlines are not expected to refund the goods and services tax (GST) component of their air fares. While full-service carriers Vistara and Jet Airways will not refund the GST component of the fares if tickets are cancelled post Sunday, low-cost airlines AirAsia India and GoAir will bear the costs and refund the tax.
A senior Air India official said that GST will be refunded only for tickets submitted for refund up to August 31, 2018 for tickets issued up to March 31, 2018, to give one month for processing and added that all its travel agents have been informed about the same.
This arises from the Section 34 (2) of the Central Goods and Services Tax Act, 2017, which says that any credit note issued by a company for supply of goods or services should not be declared later than September of the following financial year. Therefore, GST collected by an airline during 2017-18 will not be adjusted for in case a ticket is cancelled after September 30 this year. Airlines levy 5 per cent GST on economy class tickets, while business class tickets attract 12 per cent tax.
29/09/18 Pranav Mukul/Aanchal Magazine/Indian Express
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A senior Air India official said that GST will be refunded only for tickets submitted for refund up to August 31, 2018 for tickets issued up to March 31, 2018, to give one month for processing and added that all its travel agents have been informed about the same.
This arises from the Section 34 (2) of the Central Goods and Services Tax Act, 2017, which says that any credit note issued by a company for supply of goods or services should not be declared later than September of the following financial year. Therefore, GST collected by an airline during 2017-18 will not be adjusted for in case a ticket is cancelled after September 30 this year. Airlines levy 5 per cent GST on economy class tickets, while business class tickets attract 12 per cent tax.
29/09/18 Pranav Mukul/Aanchal Magazine/Indian Express
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