IndiGo Battles Rs 458 Crore GST Penalty: Claims Order Erroneous, ETCFO
IndiGo parent InterGlobe Aviation on Monday received a Goods and Service Tax (GST) demand notice with a penalty of Rs 458.26 crore, imposing GST demand on compensation received from foreign supplier and denial of input tax credit.
However, the airline believes that the order passed by the GST department is erroneous and not in accordance with law, backed by advice from external tax advisors, IndiGo said in a statement.
Also read: IndiGo hikes allowances for Pilots from January 1
India’s largest airline IndiGo will contest the case and shall take appropriate legal remedies against the GST order.
In a statement issued on Monday, IndiGo said that the order does not have any significant impact on financials, operations or other activities of the company.
Earlier on December 12, InterGlobe Aviation received a GST notice of Rs 58.74 crore, including demand and penalty.
