A GST penalty of more than Rs 458 crore by authorities has been imposed on the country’s largest airline, IndiGo, and the same can challenge the decision.
According to a recent regulatory filing, the Additional Commissioner of CGST (Delhi South Commissionerate) has issued a tax demand and penalty against the company. The order was passed under Section 74 of the CGST Act, 2017, and pertains to tax assessments covering the period from FY 2018–19 to FY 2022–23.
Rs. 458,26,16,980 is the total GST penalty.
An order has been passed by the GST department levying the GST demand, including an interest and penalty on compensation obtained from a foreign supplier, and refusal of Input Tax credit. The company assumes that the order passed via the GST department is not correct and is not as per the law, supported by advice from external tax advisors.
Subsequently, the company shall challenge it and will take pertinent legal remedies against the above-mentioned order. The company is in appeal before the Commissioner (Appeals) in a similar case for FY 2017-18, the filing specified.
Further, IndiGo said that since it will contest the order, the order does not have any significant impact on financials, operations or other activities of the company.
Separately, the Office of the Joint Commissioner, Lucknow, has charged a penalty of Rs 14,59,527 on IndiGo for the period 2021-22.
The ITC taken had been refused by the department and has raised a demand, as well as the interest and penalty on the company. The company assumes that the order passed via the authorities is wrong.
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Also, the company assumes that based on merits, the case is strong, supported by advice from external tax advisors, InterGlobe Aviation, the parent of IndiGo, said in another regulatory filing.
As per the company, the same shall challenge the order before the pertinent authority, and no impact is there on its financials, operations, or other activities.
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