IndiGo’s Parent Company InterGlobe Aviation Hit with Rs.116 Crore GST Penalty
IndiGo's parent company, InterGlobe Aviation, faces Rs.115.84 crore GST penalties over tax disputes but plans to challenge the orders
InterGlobe Aviation Ltd, the parent company of IndiGo, has been hit with penalties totaling Rs. 115.84 crore by the Goods and Services Tax ( GST ) authorities. The fines were imposed over alleged discrepancies in tax payments related to input tax credit ( ITC ) claims and GST on offshore services. The biggest penalty, amounting to Rs. 113 crore, was imposed by the Additional Commissioner...
InterGlobe Aviation Ltd, the parent company of IndiGo, has been hit with penalties totaling Rs. 115.84 crore by the Goods and Services Tax ( GST ) authorities. The fines were imposed over alleged discrepancies in tax payments related to input tax credit ( ITC ) claims and GST on offshore services.
The biggest penalty, amounting to Rs. 113 crore, was imposed by the Additional Commissioner of Central GST in Delhi’s South Commissionerate. According to tax authorities, IndiGo had provided services to foreign clients but failed to pay GST on them. The authorities ruled that these services do not qualify as exports, and as a result, the airline was denied input tax credit on certain services for the financial year 2017-18.
The Joint Commissioner of GST and Central Excise in Chennai South imposed another penalty of Rs. 2.84 crore. This fine was due to discrepancies in input tax credit claims made by the airline for the financial years 2018 to 2020.
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Despite the penalties, InterGlobe Aviation has stated that the fines will not have a major impact on its finances, operations, or overall business activities. The company has already initiated the process of challenging both penalty orders before the appropriate appellate authorities.
The penalties come at a time when IndiGo’s financial performance has already seen a decline. The airline reported an 18.3% drop in net profit, falling to Rs. 2,448.8 crore in the third quarter of the current financial year compared to the previous year.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
About InterGlobe Aviation Ltd
IndiGo, operated by InterGlobe Aviation Ltd, is India’s largest airline and a key player in the aviation industry. Known for its low-cost model, punctuality, and extensive domestic and international network, the airline has built a reputation for efficiency and affordability. The company faces legal battles over the tax penalties but its strong market performance suggests that investor confidence remains intact.
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