IndiGo slapped with ₹1.27cr penalty over GST input tax credit
What's the story
IndiGo has been slapped with a penalty of over ₹1.27 crore related to Goods and Services Tax (GST) input tax credit. The penalty relates to the period from July 2017 to March 2018. The demand notice was issued by the Office of the Joint Commissioner of State Tax, (Appeals) IV Bandra in Mumbai.
Legal action
IndiGo's parent company to challenge penalty
IndiGo's parent company, InterGlobe Aviation, has announced its intention to challenge the penalty. The company maintains that the order issued by the authorities is incorrect and it has a strong case on merits. "The company believes that the order passed by the authorities is erroneous and it has a strong case on merits, backed by advice from external tax advisors," said InterGlobe Aviation in its BSE filing.
Financial impact
Financials not significantly impacted, says IndiGo
Despite the hefty penalty, IndiGo has assured that its financials will not be significantly impacted. The airline company said it would contest the penalty before an appropriate authority. IndiGo is contesting the penalty to address the GST input tax credit-related charges.