IndiGo Slapped With Rs 1.27 Crore GST Penalty Over ITC Denial:

IndiGo Slapped With Rs 1.27 Crore GST Penalty Over ITC Denial IndiGo has informed that it has received a GST penalty order worth over Rs 1.27 crore related to an Input Tax Credit (ITC) dispute. The company's parent, InterGlobe Aviation, on Friday, disclosed to the stock exchanges that the GST authorities have rejected the ITC benefit claimed by the company. As a result, the company has received a demand along with interest and a penalty from the Office of the Joint Commissioner of State Tax (Appeals) IV Bandra, Mumbai.

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The total penalty is Rs 1.27 crore, and it is related to the period between July 2017 and March 2018. There is no major financial impact on the financials, as per the company. However, the company does not agree with this order passed by the GST authority, calling it erroneous. IndiGo believes it has a strong case based on the facts, supported by advice from its external tax advisors. The company has decided to challenge this before the appropriate authority.