NEW DELHI — InterGlobe Aviation, the parent company of IndiGo, said Tuesday it has received a penalty order of Rs 117.52 crore from the Joint Commissioner of Central Tax and Central Excise under the CGST Kochi Commissionerate following the denial of input tax credit for multiple financial years.
In a regulatory filing, the airline said authorities have rejected the input tax credit it claimed for FY 2018–19 and FY 2021–22 and issued a demand order along with the penalty totaling Rs 1,17,52,86,402.
“The department has denied input tax credit availed by the company and has issued a demand order along with penalty,” the filing said. “The company believes that the order passed by the authorities is erroneous. Further, the company believes that it has a strong case on merits, backed by advice from external tax advisors.”
InterGlobe Aviation said it will challenge the order before the appropriate authority, adding that the penalty will not materially affect its financial position or business operations.
“There is no significant impact on financials, operations or other activities of the company,” the airline said.
Shares of InterGlobe Aviation slipped by Rs 95, or 1.64 percent, in intraday trading after opening nearly flat at Rs 5,794.50.
The penalty notice comes as IndiGo continues expanding operations. On November 29, the carrier announced new direct routes and additional frequencies from the newly inaugurated Navi Mumbai International Airport, enhancing connectivity to Coimbatore, Chennai, Vadodara and North Goa.
IndiGo also said it has completed mandatory Airbus system updates across its entire A320-family fleet following a global disruption caused by a software issue. All 200 aircraft are now fully compliant, the airline noted.
Meanwhile, earlier Tuesday, an IndiGo flight from Kuwait to Hyderabad was diverted to Mumbai after a bomb threat was received by customer support staff at Hyderabad’s Rajiv Gandhi International Airport. Flight 6E-1234 was rerouted midair after authorities received the threat message at 5:12 a.m., according to official sources. (Source: IANS)
