gst not refund

Dear sir,

If the airline ticket was cancelled/refunded because the passenger could not travel due to a visa issue, the GST component may also be refundable, depending on the airline’s cancellation/refund conditions and whether the service was actually supplied. The airline, not the passenger directly, should generally process the applicable GST refund/adjustment. The passenger should make a written claim to the airline; if refused, a complaint can be made before the appropriate Consumer Commission for recovery.

The legal approach is to first determine whether the amount described as “GST” relates to the airfare/service that was never supplied or to a cancellation/no-show charge. If the passenger could not travel because the visa was not granted and the ticket was cancelled or otherwise unused, you should issue a formal demand notice to the airline seeking a complete fare/tax breakup and refund of the GST/statutory taxes attributable to the unperformed air-travel service, relying on the applicable DGCA refund requirements and GST principles; the fact that the basic fare is non-refundable does not automatically permit the airline to retain statutory taxes. If the airline refuses, obtain the refusal in writing and pursue a complaint before AirSewa/DGCA for violation of the applicable passenger-refund requirements and, independently, file a consumer complaint under the Consumer Protection Act, 2019 seeking refund, interest and appropriate compensation for deficiency in service. The GST department can also be approached if there is evidence that GST was collected/retained contrary to the GST provisions, but the primary refund claim should be against the airline, as it collected the amount from the passenger and is responsible for issuing the appropriate refund/adjustment. The crucial point in the notice should therefore be: GST attributable to a service that was never supplied cannot simply be retained merely by describing the ticket as non-refundable; the airline must establish the precise taxable component, including any GST legally chargeable on a cancellation/no-show fee, and refund the balance.