InterGlobe Aviation Limited, the parent company of Indigo, has disclosed information related to penalties imposed by tax authorities. The company has received two significant GST-related penalty orders which are currently being contested.
The Additional Commissioner of Central Goods & Service Tax – Delhi South Commissionerate has imposed a penalty of ₹113.02 crore on the company. The penalty is related to the levy of GST on services provided to offshore recipients which the authorities do not consider as exports.
Additionally, the company has been denied an Input Tax Credit for certain services. The company is in the process of challenging this order through the appropriate legal channels.
The Joint Commissioner of GST & Central Excise – Chennai South – Tamil Nadu has also imposed a penalty of ₹2.84 crore. This penalty is due to the denial of Input Tax Credit for mismatches identified. The company is preparing to contest this order as well.
Despite the significant amounts of the penalties, the company has stated that these orders do not have a material impact on its financials, operations or other activities.
InterGlobe Aviation Limited is taking the necessary steps to address these issues through the appropriate appellate authorities.
InterGlobe Aviation Limited is the parent company of IndiGo, a leading airline in India. The company is involved in the aviation sector, providing domestic and international air travel services. IndiGo is known for its low-cost business model, offering affordable flights while focusing on punctuality and customer satisfaction.
As of February 06, 2025, at 11:10 AM, the shares of InterGlobe Aviation are trading at ₹4,394 per share, down 0.48% from yesterday’s closing price. Over the last month, the stock has surged by 2.98%. The stock’s 52-week high is ₹5,035 and its low is ₹2,984.20.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Feb 6, 2025, 2:30 PM IST
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