Sharing an update on the ongoing discussion with the GST Council, Pradip Lulla, Acting President and Vice President, Travel Agents Federation of India (TAFI), has said, “We had requested the GST Council and the Finance Ministry to review the refund of GST on air ticket refunds, and extend the date applicable for refund GST till March 31, 2021 due to the delay in total refunds by airlines. However, we have received no update on this. In fact, we even took this matter up during the APJC meeting. Unfortunately, the airlines argued that the government is not abiding by that. So agents who have submitted refunds after October 1, 2020 will not receive any refunds and GST will be deducted, because the airline has to pay to the government. Those who have submitted before October 1, their GST will not be cut, and will be duly refunded. The government is not willing to extend any leniency in this matter; since its a liability to the government, they will not allow anything to agents.”
As per rule, if tickets are not refunded till September 30, 2020, then GST will not be refunded and customers will end up losing 5% in the economy class ticket and 12% in business class of the ticket value. TAFI has also filed a case in Supreme Court for airline refunds.