IndiGo gets ₹117.5 crore penalty order from CGST

IndiGo parent InterGlobe Aviation on Tuesday said that it received a penalty order of ₹117.52 crore from the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate.

The order relates to the denial of input tax credit for FY19 and FY22 and was communicated to the company on December 1.

The airline said it will contest the demand order that the tax department has issued along with the penalty after disallowing input tax credit (ITC) availed during the period under review.


“The department has denied input tax credit (ITC) availed by the Company and has issued a demand order along with penalty. The Company believes that the order passed by the authorities is erroneous. Further the Company believes that it has a strong case on merits, backed by advice from external tax advisors. Accordingly, the Company will contest the same before the appropriate authority,” the company said.

InterGlobe Aviation added that the order does not have a significant impact on its financial position, operations or other business activities.

IndiGo shares opened almost flat at ₹5794.50 apeice on the BSE on Tuesday.