IndiGo Faces GST Penalty Over Input Tax Credit Dispute

IndiGo announced on Friday that it has received a penalty of over ₹1.27 crore related to GST input tax credit. The airline plans to legally challenge this order.

In a filing with the BSE, parent company InterGlobe Aviation explained that tax authorities denied their claim for input tax credit. As a result, the Office of the Joint Commissioner of State Tax in Bandra, Mumbai, has issued a demand that includes the original tax amount, interest, and a penalty.

Details of the Tax Penalty

The penalty covers the period from July 2017 to March 2018.

Despite the fine, IndiGo stated that the order would not have a major impact on its overall financial health. However, the airline intends to fight the decision.

IndiGo’s Response to the Order

The company believes the tax authorities made a mistake. In its official statement, IndiGo noted:

“The company believes that the order passed by the authorities is erroneous and it has a strong case on merits, backed by advice from external tax advisors.”

IndiGo will now contest the penalty before the appropriate legal authorities to resolve the dispute.

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