IndiGo Hit with ₹117.5 Cr GST Penalty over Denied ITC
IndiGo stated that the order was erroneous and will be contested before the appellate authority
InterGlobe Aviation Limited, operating the popular airline IndiGo, has been served with a huge Goods and Services Tax (GST) penalty, which includes a demand for denied Input Tax Credit (ITC) along with a penalty amounting to a total of ₹1,17,52,86,402.
The penalty order, received on December 1, 2025, from the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate, covers the period from the Financial Year 2018-19 to 2021-22.
Key Details of the Order
- Issuing Authority: Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate, Kerala
- Penalty Amount: ₹1,17,52,86,402 (Demand Order along with Penalty)
- Financial Year(s): 2018-19 to 2021-22
- Allegation/Contravention: Denial of Input Tax Credit (ITC) availed by the Company.
- Receipt Date: December 1, 2025
- Impact on Financials: No significant impact on financials, operations, or other activities of the Company
The action was initiated by the department primarily due to the denial of Input Tax Credit (ITC) availed by the company, which consequently resulted in the issuance of a demand order coupled with a penalty.
In its official disclosure filing with the stock exchanges, IndiGo stated its belief that the order passed by the tax authorities is erroneous. The company asserted that it holds a "strong case on merits," based on advice received from its external tax advisors.
The airline confirmed its intent to challenge the penalty and demand notice before the appropriate appellate authority.
Despite the hefty penalty amount, InterGlobe Aviation Limited noted that the order would have "no significant impact on financials, operations or other activities of the Company," suggesting that provisions or financial estimates may already account for such contingencies.
About the Company
IndiGo is India's largest passenger airline and a major global low-cost carrier, known for its emphasis on affordable fares, on-time performance, and a hassle-free travel experience. IndiGo is the brand name of InterGlobe Aviation Limited, which is listed on Indian stock exchanges. The company's stock is traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the ticker symbol INDIGOSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
