Gst on ticket cancellation

Is gst applicable on ticket cancellation by railways. Is railway liable to pay gst on such cancelled tickets?
Replies (2)
Quick Summary
This discussion explores the applicability of GST on train ticket cancellations by railways. The prevailing view is that if a transaction isn't completed, GST should be refunded along with the ticket cost. However, if deductions are made, GST on the deducted amount may not be refundable. Cancellation is often seen as liquidated damages or compensation, not a charge for a supply, suggesting GST shouldn't apply. Despite this, the unclear tax position means railways currently charge GST on cancellations.

In my opinion.... if the transaction is not been done...
then gst is also refundable along with ticket charge.

if any deduction is made... then gst on that part will not be refunded.

Concept of cancellation can be linked to liquidated damages. Cancellation is in line with compensation and is not a charge against a supply. Therefore, ideally GST should not be charged on the same. Although, as the tax position is unclear, taxpayers are presently charging GST on the same. 

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