IndiGo Parent Gets GST Demand Order Of Rs 116 Crore
IndiGo is in process of contesting the orders before the appropriate appellate authority.
IndiGo parent InterGlobe Aviation Ltd. on Wednesday said that it has received GST demand orders totalling Rs 116 crore.
The amount includes penalties from the additional commissioner of the Central Goods and Service Tax in Delhi’s South Commissionerate, as well as from the joint commissioner of GST and Central Excise, Chennai South, according to an exchange filing.
The Delhi additional commissioner has levied a penalty of Rs 113 crore. The department has levied GST on services provided to offshore recipient. According to the department, it was not an export of services. So, it denied input tax credit on certain services for financial year 2017-18.
Meanwhile, the Chennai Joint Commissioner has slapped a fine of Rs 2.84 crore on the company. The department has denied input tax credit due to the mismatch for fiscal 2018 to fiscal 2020.
However, the company's filing stated that it is in process of contesting the orders before the appropriate appellate authority.
It added that there is no material impact on its financials, operations or other activities due to the developments.
In the third quarter of the ongoing financial year, the airline's net profit had fallen 18.3% to Rs 2,448.8 crore over the previous year.
Shares of InterGlobe Aviation on Wednesday closed 1.63% higher at Rs 4415.25 apiece on the BSE, compared to a 0.4% decline in the benchmark Sensex.
