- Shares of Blue Dart Express rose over 8% after a GST dispute resolution with its subsidiary.
- Blue Dart Aviation's GST liability was reduced from Rs 420.79 crore to Rs 64.98 lakh.
- The company paid the reduced tax and interest voluntarily to avoid prolonged litigation.
Shares of Blue Dart Express Ltd. surged more than 8% on Thursday after its air cargo subsidiary, Blue Dart Aviation Ltd., reported a sharply reduced tax liability following adjudication of a large goods and services tax (GST) dispute.
After reaching an intraday high of Rs 6,039, the stock is currently trading at Rs 5,970, accounting for gains of more than 8%. This compares to Wednesday's cosing price of Rs 5,521.
As mentioned earlier, the rally in Blue Dart shares comes on the back of a stock exchange filing on Wednesday night, where the company confirmed that the Commissioner of GST and Central Excise has dropped almost the entire GST demand that was issued to subsidiary Blue Dart Aviation in a show cause-cum-demand notice dated Sept. 15, 2025.
The original notice had proposed a demand of about Rs 420.79 crore for the period April 2021 to March 2023, excluding interest and penalty, tied largely to issues around place of supply and availment of input tax credit.
However, after detailed submissions by the company, the adjudicating authority has set aside Rs 420.14 crore of that amount.
The order has now confirmed only Rs 64.98 lakh in tax, along with interest of Rs 41.72 lakh and a penalty of Rs 6.49 lakh. Blue Dart Aviation has voluntarily paid the tax and interest “to avoid protracted litigation,” the company said.
Blue Dart added that it does not expect any material impact on its financials, operations or other activities from the final order.
Blue Dart Express, part of the DHL Group and a leading player in the domestic express logistics and air cargo market, had previously disclosed the GST notice in September.
The latest ruling substantially resolves that risk, helping drive the sharp move in the shares on Thursday.
Shares of Blue Dart Express, which has given investors a negative 12-month return of 16%, is currently trading with a relative strength index of 55, suggesting neutral market sentiment.
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