Blue Dart subsidiary faces ₹420 crore tax show cause notice; check details

Blue Dart Express on Tuesday, September 16, said that its wholly owned subsidiary, Blue Dart Aviation Limited, received a show cause notice aggregating to ₹420 crore under Section 73(1) of the CGST Act, 2017, 2017/TNGST Act, 2017

The show cause cum demand notice, sent by the Office of the Commissioner of GST, and Central Excise on September 15, alleges the demand and recovery of the tax dues for the period April 2021 to March 2023.

The demand notice alleges that ₹365.58 crore was paid under the wrong head of Integrated Goods and Services Tax (IGST) instead of CGST and SGST, the company said in a filing.

The notice also claims that the firm availed an ineligible ITC (input tax credit) worth ₹54.55 crore, “based on invoices issued by other locations situated”. Furthermore, it flagged ₹64.98 lakh as the ITC credit involved in the materials subsequently written off in the firm’s books of accounts.

As per the tax demand, Blue Dart Aviation will be required to show cause to the Additional or Joint Commissioner of GST & Central Excise, Chennai South Commissionerate, within 30 days of the receipt of the notice.

Blue Dart Aviation is evaluating the matter and will submit its reply within the prescribed time period. Furthermore, the company said that it envisages no relevant impact on its financials, operations, or other activities.

Stock performance

Shares of Blue Dart closed 0.62% higher at ₹5,737 apiece on the National Stock Exchange (NSE) on Tuesday. However, the announcement was made after the market closed.

The stock gained 0.04% over the week but lost 9.01% over three months. On a year-to-date basis, it declined 16.05%.

While the scrip hit a year’s low of ₹5,365 on April 7, 2025, it touched a 52-week high of ₹9,488.70 per equity share almost a year ago on September 17, 2024.

Blue Dart Express’s total market capitalization stood at ₹13,612.72 crore, as of September 16, 2025, according to data on the NSE.

Q1 Result

Blue Dart Express’s consolidated net profit slipped 8.5% year-on-year (YoY) to ₹48.83 crore in the June quarter of FY26, compared to ₹53.42 crore in the corresponding quarter last year.

The company's revenue from operations surged 7.39% to ₹1,441.92 crore during the quarter under review, as against ₹1,342.71 crore in Q1FY25.