IndiGo fined over INR 13 lakh in GST case; airline to challenge order

IndiGo has been fined over INR 13 lakh by the Punjab State Tax Department in connection with Goods and Services Tax (GST) payments related to the financial year 2021–22.

According to PTI, the Office of the Assistant Commissioner of State Tax, Excise and Taxation Department, Punjab, has imposed a penalty of INR 13,28,255 on the airline. IndiGo has said that it does not agree with the tax department’s ruling and will challenge the order through legal channels.

In a regulatory filing, InterGlobe Aviation, the parent company of IndiGo, said the airline believes the order is incorrect and that its stand is supported by advice received from external tax experts.

“The company believes that the order passed by the authorities is erroneous and it has a strong case on merits. Accordingly, the company will contest the same before the appropriate authority,” the airline said.

The company also clarified that the penalty will not have any major impact on its financial position, operations or business activities. The GST penalty comes shortly after IndiGo went through a period of widespread flight disruptions earlier this month. Hundreds of flights were cancelled or delayed due to a combination of operational and weather-related challenges, leaving many passengers stranded across major airports.

Following these disruptions, the Directorate General of Civil Aviation (DGCA) directed IndiGo to reduce its winter flight schedule by 10% as a stabilisation measure.

IndiGo has now said that its operations have stabilised and that it is fully prepared to handle the high travel demand expected during the upcoming holiday season.

With weather forecasts pointing to a harsher winter ahead, the airline has assured passengers that it is taking necessary steps to maintain service reliability and minimise delays.

IndiGo currently operates the largest domestic network in India and continues to expand its international operations.