InterGlobe Aviation, operating IndiGo, has received a GST penalty order of ₹458.26 crore. The GST department’s order pertains to compensation received from a foreign supplier and denial of input tax credit. The company intends to contest this order, believing it to be erroneous, and will pursue appropriate legal remedies. The company is already in appeal before the Commissioner (Appeals) for a similar matter related to FY 2017-18.
GST Penalty Details
InterGlobe Aviation has been notified of a GST penalty amounting to ₹458,26,16,980. The order was issued by the Additional Commissioner of CGST- Delhi South Commissionerate, as part of an assessment under Section 74 of the Central Goods and Service Tax Act, 2017, applicable for fiscal years 2018-19 to 2022-23.
Reasons for the Penalty
The penalty relates to a GST demand imposed on compensation received from a foreign supplier and the denial of input tax credit. InterGlobe Aviation received official communication regarding this on December 29, 2025.
Company’s Response
InterGlobe Aviation strongly disagrees with the GST department’s order and believes it to be erroneous. The company plans to contest the order and take appropriate legal action. It has stated it is relying on external tax advisors and is already in appeal before the Commissioner (Appeals) concerning a similar issue for FY 2017-18.
Impact Assessment
The company believes the GST order will not significantly impact its financials, operations, or other company activities. InterGlobe Aviation will contest the order accordingly.
Source: BSE
