The Delhi High Court on Friday protected InterGlobe Aviation, which operates India’s largest airline IndiGo, from coercive action over a ₹458.26 crore goods and services tax (GST) demand linked to compensation received from a foreign engine supplier.
IndiGo said on Friday it has been slapped with a penalty of a little over Rs 1.27 crore related to GST input tax credit and that it will challenge the order.
InterGlobe Aviation Ltd, the parent company of budget carrier IndiGo, on Tuesday disclosed that it has received a substantial tax order from the Additional Commissioner of CGST, Delhi South Commissionerate, raising a GST demand of ₹458.26 crore for multiple financial years.
IndiGo on Tuesday said it has been slapped with a penalty of Rs 117.52 crore related to input tax credit and the airline will challenge the ruling.
In a relief to airlines InterGlobe Aviation and SpiceJet Ltd, the Supreme Court on Monday dismissed the customs department’s appeal seeking to levy integrated goods and services tax (IGST) retrospective on reimport of aircraft or aircraft parts into India after their repairs outside the country.
InterGlobe Aviation, the parent company of IndiGo, has been issued a penalty of Rs. 944.20 crore by the Income tax department for the assessment year 2021-22. The airline, however, has rejected the order, calling it “erroneous and frivolour,” and has vowed to challenge it through legal means.
The Income Tax Department has issued an order against Interglobe Aviation Ltd, the parent company of IndiGo Airlines, imposing a penalty of Rs 944.20 crore.
The court declared unconstitutional a part of the 2021 customs department exemption notification that required payment of integrated GST and a cess on the repair cost of goods re-imported into India after being sent abroad for maintenance.
IndiGo parent InterGlobe Aviation Ltd. on Wednesday said that it has received GST demand orders totalling Rs 116 crore.
Indigo announced on Wednesday that it plans to challenge two penalty orders totaling Rs 3,50,299 regarding input tax credit claims.
