IndiGo slapped with ₹458cr GST demand; airline plans to contest
What's the story
InterGlobe Aviation, the parent company of budget carrier IndiGo, has been served a tax order by the Additional Commissioner of CGST, Delhi South Commissionerate. The order demands a Goods and Services Tax (GST) payment of ₹458.26 crore for multiple financial years. The airline disclosed this in a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements).
Legal battle
IndiGo to challenge GST demand order in appellate proceedings
The tax demand relates to an assessment under Section 74 of the Central Goods and Services Tax Act, 2017, for FY 2018-19 to FY 2022-23. The authority has raised the demand on compensation received from a foreign supplier and by disallowing certain input tax credits claimed by IndiGo. The airline has said that the order is "erroneous and not in accordance with law," and plans to contest it through appropriate appellate mechanisms.
Impact assessment
IndiGo's financial position unaffected by GST demand
Despite the hefty tax demand, IndiGo has said that it does not expect any material impact on its financial position, operations, or cash flows. The airline is already in appellate proceedings before the Commissioner (Appeals) in a related matter for an earlier financial year. This comes amid increased tax scrutiny on large corporates over GST treatment of cross-border transactions and compensation arrangements.