IndiGo has received a Rs 118 crore penalty notice from the Joint Commissioner of Central Tax & Central Excise, CGST Kochi Commissionerate in Kerala, for alleged wrongful input tax credit claims. The parent company of IndiGo, InterGlobe Aviation, informed the exchanges that the penalty order covers the financial years 2018–19 to 2021–22.
IndiGo says GST penalty order ‘incorrect’
The airline said that the CGST department denied the input tax credit (ITC) availed by the company and issued a demand order along with the penalty.
InterGlobe Aviation, however, said the order is incorrect. It maintains that it has a strong case, backed by legal advice from external tax experts. “The Company believes that the order passed by the authorities is erroneous,” the filing by IndiGo stated. It added that it will contest the decision before the appropriate appellate authority.
The company further added that the penalty does not affect its financials, operations, or other activities in a material manner. It said the matter will be pursued through the legal process.
Share price of InterGlobe Aviation
The share price of InterGlobe Aviation has surged 24.71% so far this year.