Mumbai: InterGlobe Aviation Ltd, the parent company of IndiGo, has been hit with penalties totalling ₹115.84 crore by GST authorities.
Of the total amount, ₹113 crore was imposed by the additional commissioner of Central Goods and Service Tax (GST) in Delhi’s South Commissionerate. This penalty was related to GST on services provided to offshore recipients, which the authorities did not consider as an export of services. As a result, input tax credit was denied on certain services for the financial year 2017-18.
An additional ₹2.84 crore was imposed on InterGlobe Aviation by the joint commissioner of GST and Central Excise in Chennai South. This fine was due to a mismatch in input tax credit claims for the fiscal years 2018 to 2020, according to CNTV.
InterGlobe Aviation stated in its filing that it is in the process of challenging the orders before the appropriate appellate authority. It also assured that the penalties won’t have a material impact on its financials, operations, or other activities.
According to NDTV, IndiGo’s net profit dropped by 18.3% to ₹2,448.8 in the third quarter of the current financial year, compared to the previous year.
Despite these challenges, InterGlobe Aviation’s shares closed 1.63% higher at ₹4,415.25 on the BSE, outperforming the benchmark Sensex, which saw a 0.4% decline.
