Airlines Under GST Scrutiny: Government Tightens Rules on Unpaid Tax for Cancelled Tickets

The government has tightened GST rules for airlines regarding unpaid taxes on cancelled tickets. Airlines must now share comprehensive passenger and booking data daily with tax authorities to reconcile records with GST payments. This move aims to curb revenue leakages and ensure compliance. Previously, airlines had flexibility in reporting passenger data, but now they must submit data 24 hours before departure and update it at wheels-off time. The Directorate General of GST Intelligence (DGGI) has been investigating cases where airlines retained GST collected from cancelled bookings without remitting it. The new measures will impose higher compliance costs for airlines but are essential to ensure that GST collected matches what is remitted to authorities. This initiative aims to close revenue gaps and reinforce fiscal accountability within the airline industry.