IndiGo Faces Rs.115.86 Crore GST Penalty, Says No Major Impact on Business
IndiGo Faces Rs.115.86 Crore GST Penalty, Says No Major Impact on Business
New Delhi – IndiGo Airlines has been fined ₹115.86 crore by the Goods and Services Tax (GST) authorities, but the airline insists this will not affect its business or operations.
Why Was IndiGo Fined?
- ₹113.02 crore penalty – The GST department ruled that services provided to international clients were not considered “export of services.” Because of this, IndiGo was denied input tax credit for certain services from 2018, 2019, and 2020.
- ₹2.84 crore penalty – The remaining fine was for the denial of tax credits for the same years.
The penalties were imposed by tax authorities in Delhi and Chennai, with Delhi’s additional commissioner issuing the biggest penalty of ₹113 crore. IndiGo disagrees with the ruling and is challenging it in court.
Financial Impact
IndiGo’s profits dropped by 18.3% in the third quarter of this financial year, bringing its net profit to ₹2,448.8 crore compared to last year.
Security Fine at Mumbai Airport
In January, the Bureau of Civil Aviation Security (BCAS) fined IndiGo ₹1.2 crore for violating security rules at Mumbai Airport. Passengers were allowed to sit and eat on the airport apron (aircraft parking area), which led to the largest-ever security fine on an Indian airline.
Despite these setbacks, IndiGo maintains that its financial health and daily operations remain stable.
