IndiGo Faces Rs 458 Crore GST Penalty; Airline To Contest Ruling

The country's largest airline IndiGo on Tuesday said authorities have slapped a GST penalty of over Rs 458 crore, and that it would contest the decision.

The Additional Commissioner of CGST- Delhi South Commissionerate has slapped the penalty. It pertains to the assessment order under Section 74 of the Central Goods and Services Tax Act, 2017, for FY-2018-19 to FY 2022-23, according to a regulatory filing. The total GST penalty is Rs 458,26,16,980.

• 
  Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon
• 
  NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term
• 
  Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani
• 
  'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps
• 
  India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers
• 
  'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax
• 
  Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite
• 
  Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness
• 
  CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE
• 
  Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI

"GST department has passed an order imposing GST demand along with interest and penalty on compensation received from foreign supplier and denial of Input Tax credit. The company strongly believes that the order passed by the GST department is erroneous and not in accordance with law, backed by advice from external tax advisors.

Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay

"Accordingly, the company will contest the same and shall take appropriate legal remedies against the aforesaid order. The company is already in appeal before the Commissioner (Appeals) in a similar matter for FY 2017-18," the filing said on Tuesday.

Further, IndiGo said that since it will contest the order, the order does not have any significant impact on financials, operations or other activities of the company.

Separately, the Office of the Joint Commissioner, Lucknow, has imposed a penalty of Rs 14,59,527 on IndiGo for the period 2021-22.

"The department has denied input tax credit availed and has raised a demand along with interest and penalty on the company. The company believes that the order passed by the authorities is erroneous. Further, the company believes that it has a strong case on merits, backed by advice from external tax advisors," InterGlobe Aviation, the parent of IndiGo, said in another regulatory filing.

According to the company, it will contest the order before the appropriate authority, and there is no significant impact on its financials, operations or other activities.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.