IndiGo Faces Rs 117.52 Crore Penalty Over Input Tax Credit, Plans to Challenge Ruling

IndiGo on Tuesday announced that it has been slapped with a penalty of Rs 117.52 crore by the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate, Kerala, in connection with input tax credit (ITC) claims. The penalty pertains to the period between 2018-19 and 2021-22.

In a regulatory filing, the airline said the tax authorities denied the ITC availed by the company and issued a demand order along with the 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,” the filing stated.

IndiGo said it will contest the penalty before the appropriate authority and added that the ruling would not have a significant impact on its financials, operations, or other activities. Following the announcement, the airline’s shares fell 1.60 per cent, closing at Rs 5,697.70 apiece.

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