IndiGo on Tuesday disclosed that it has been issued a penalty demand of Rs. 117.52 crore by the Joint Commissioner of Central Tax and Central Excise under the CGST Kochi Commissionerate, Kerala, over alleged wrongful input tax credit (ITC) claims. The demand covers the period from 2018–19 to 2021–22.
In a regulatory filing, the airline said the tax authorities have disallowed the ITC it had availed during the relevant years and passed a demand order along with penalty. IndiGo, however, disputed the findings, maintaining that the order is legally unsound.
“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,” IndiGo stated in its filing.
The airline confirmed that it will challenge the order before the appropriate appellate authority. It also clarified that the dispute does not have any significant impact on its financials, ongoing operations, or business activities.
Following the announcement, IndiGo’s stock declined by 1.60% to end the day at ₹5,697.70 per share.
The development comes at a time when several entities across sectors are seeing tightened scrutiny of GST-related compliance. IndiGo expressed confidence that the matter will be resolved favourably at the appellate stage.
