GST Authorities Clamp Down on IndiGo with Hefty Penalties

GST authorities have imposed penalties totaling Rs 115.86 crore on IndiGo for not recognizing certain services as 'export of services.' IndiGo is contesting the orders, stating that there is no material impact on its financials or operations.

GST authorities have hit IndiGo with penalties amounting to Rs 115.86 crore, the airline revealed in a regulatory filing on Wednesday.

A majority of the penalty, Rs 113.02 crore, results from services to offshore recipients not being classified as 'export of services' by GST officials, leading to the denial of input tax credit for fiscal years 2018, 2019, and 2020. An additional Rs 2.84 crore penalty arises from further ITC denials for the same periods, according to the filing.

IndiGo stated it is actively challenging these orders before the appellate authority and assured stakeholders that there is no significant impact on its financials or operations.