Indigo has received a GST penalty order of Rs 58.74 crore from the Additional Commissioner of CGST, Delhi South Commissionerate.
The order relates to alleged violations for FY21. However IndiGo said that it plans to contest the order before the appropriate authority. The tax department has raised a GST demand along with the penalty. Indigo said the order is “erroneous” and added that it has a strong case on merits.
IndiGo to challenge order
“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,” IndiGo said in its BSE filing.
IndiGo clarified that the development will not have any significant impact on its financials, operations or other business activities.
IndiGo hit by schedule cuts and PIL after mass disruptions
The GST penalty comes at a time when the carrier is already facing significant financial strain because of the recent flight disruption in the first week of December.
IndiGo has been directed to cut 10% of its domestic winter schedule for 2025 across all sectors by the DGCA. The airline’s CEO, Pieter Elbers, has been called to appear before a DGCA Committee of Officers on December 12 as the regulator reviews the disruptions.
IndiGo has announced Rs 10,000 travel vouchers for severely affected passengers, valid for any IndiGo flight over the next 12 months. This is in addition to the government-mandated compensation of Rs 5,000 to Rs 10,000 for flights cancelled within 24 hours of departure.
With mass cancellations, refunds and efforts to restore operations to normal, the financial impact of the case is still unclear.
A PIL has also been filed in the Delhi High Court by Akhil Rana and Utkarsh Sharma against IndiGo, the Ministry of Civil Aviation and the DGCA. The matter was heard on December 10 and adjourned after preliminary submissions.
