IndiGo Faces Hefty Penalty Over Tax Credit Dispute in Gujarat

IndiGo is facing a penalty of Rs 1.30 crore due to input tax credit issues in Gujarat. While the Assistant Commissioner of State Tax, Ahmedabad, imposed the penalty, IndiGo maintains its actions were justified and is considering legal recourse. The financial impact on operations remains minimal.

IndiGo, India's leading airline, has reported facing a substantial penalty of Rs 1.30 crore connected to input tax credit discrepancies in Gujarat. The penalty was levied by the Assistant Commissioner of State Tax, Ahmedabad, related to the fiscal year 2020-21.

The airline argues it rightfully claimed the input tax credit and stands by its actions, indicating a strong case. IndiGo is currently assessing potential legal actions, including filing an appeal to the appropriate appellate authority.

Despite the financial penalty, the company assures that its overall financial status and operational activities remain unaffected. Earlier this week, IndiGo also faced a Rs 14 lakh fine linked to input tax credit matters in Uttar Pradesh.