IndiGo penalised ₹117.5 crore in input tax credit dispute; to contest order

InterGlobe Aviation Ltd, the operator of IndiGo airlines, on Tuesday said the Central GST authorities in Kochi have imposed a penalty of ₹117.52 crore on the company after denying input tax credit (ITC) claimed over four financial years.

In a regulatory filing, the company said the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate has issued a demand order for FY 2018-19 to 2021-22, disallowing ITC availed by the airline and levying the penalty.

The communication from the authority was received on December 1, the airline said.

IndiGo said it believes the order is “erroneous” and that it has a “strong case on merits”, supported by advice from external tax experts.

“Accordingly, the Company will contest the same before the appropriate authority,” it added.

The company also said the order will not have any material bearing on its financial or operational performance. “There is no significant impact on financials, operations or other activities of the Company,” the filing stated.

InterGlobe Aviation is India’s largest airline by market share.