IndiGo slapped with ₹13 lakh GST penalty, airline to contest order — details here

More than 100 fines imposed on IndiGo ₹13 lakh in connection with Goods and Services Tax (GST) payments. The low-budget airline reportedly disagrees with the decision and will appeal it through appropriate legal channels.

Office of Deputy Commissioner of Excise, Excise and Excise Department of Punjab State issued the following penalty: ₹13,28,255 for the financial year 2021-22, news agency PTI reported.

IndiGo operates the largest domestic network in India and continues to expand its International footprint.

IndiGo will appeal the decision

The airline said, “The Ministry also increased the GST demand along with the penalty. The company believes that the instructions given by the authorities are incorrect.” PTI.

The airline, which is also India’s largest by market capitalization, said it believes it has a strong case on the merits and its position is supported by advice from external tax experts.

“Accordingly, the company will appeal the same before the appropriate authority,” IndiGo’s parent company InterGlobe Aviation said in a regulatory filing on Thursday.

He also clarified that the penalty will not have a material impact on the company’s financial condition, operations or other business activities. PTI reported.

IndiGo services provide balance after chaos

The GST notification comes shortly after a period of widespread disruption during which IndiGo saw hundreds of its flights canceled or postponed due to operational and weather-related challenges.

But the airline’s operations have stabilized, announcing on Wednesday that it is fully prepared to meet high travel demand during the upcoming holiday season. This assurance comes in the wake of significant operational challenges earlier this month that left a large number of passengers stranded at airports across India.

The carrier has also implemented a 10% reduction in its winter flight schedule as a strategic move in line with the Ministry of Civil Aviation’s order aimed at stabilizing the network after the disruptions.

With weather forecasts pointing to a harsher winter ahead, the airline said it remains firmly committed to maintaining service reliability and will take all necessary measures to minimize potential travel delays for its passengers.