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Indigo Airlines, India’s largest carrier, received a GST notice of Rs 944.20 crore for 2021-22. Indigo plans to contest it legally, asserting minimal impact on operations.
IndiGo (File Photo)
IndiGo Airlines, India’s largest carrier, has been slapped a Goods and Services Tax (GST) notice of Rs 944.20 crore for the assessment year 2021-22. In the filing, Indigo said the issue stems from an assessment order under Section 143(3) of the Income Tax Act, which was dismissed, yet remains pending adjudication.
IndiGo, in its response, has strongly opposed the order, calling it erroneous and frivolous. The airline has stated its intent to contest the decision legally, asserting that the ruling does not align with existing tax laws.
“The Income Tax Authority has passed an order imposing a penalty of Rs. 944.20 Cr. for the Assessment Year 2021-22. The order has been passed on the basis of an erroneous understanding that appeal filed by the Company before the Commissioner of Income Tax (Appeals) [“CIT(A)”] against the Assessment order under Section 143(3) has been dismissed, whereas the same is still alive and pending adjudication,” Indigo said in the filing.
IndiGo maintains that the tax demand will not have a significant impact on its financial health, operations, or other business activities. While the exact monetary implications remain unclear, the airline believes that the order will not materially affect its performance.
“The Company strongly believes that the order passed by Income Tax Authority is not in accordance with law and is erroneous and frivolous. Accordingly, the Company will contest the same and shall take appropriate legal remedies against the aforesaid order. Therefore, the said order does not any have significant impact on financials, operations or other activities of the Company,” the company said in the filing.
