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Gst on ticket cancellation

Vandna Sinha (42 Points)

12 October 2021

Is gst applicable on ticket cancellation by railways. Is railway liable to pay gst on such cancelled tickets?

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2 Replies

akshay Kumar (137 Points)
Replied 12 October 2021

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.

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CA Akshay Hiregange (Partner - Audit & Assistance) (4825 Points)
Replied 12 October 2021

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.