InterGlobe Aviation Ltd, the parent company of budget carrier IndiGo, on Wednesday (February 5) said it has been levied with penalties totalling ₹115.87 crore by the GST authorities.
The penalties include ₹113.02 crore imposed by the Additional Commissioner of Central Goods & Service Tax – Delhi South Commissionerate, and ₹2.84 crore by the Joint Commissioner of GST & Central Excise – Chennai South – Tamil Nadu.
The violations, as per the authorities, are primarily related to the levy of GST on services provided to offshore recipients, which the department has determined is not an export of services. Additionally, the company has been denied input tax credit (ITC) on certain services for the financial year 2017-18, and there are mismatches in ITC claims for the years 2017-18 through 2019-20.
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InterGlobe Aviation has stated that it is in the process of contesting these orders before the appropriate appellate authorities and assured that the penalties and actions will not have a material impact on the company’s financials, operations, or other activities.
Interglobe Aviation reported an 18% year-on-year (YoY) decline in its December quarter consolidated net profit at ₹2,449 crore against ₹2,998 crore in the year-ago period. The airline had posted a loss of ₹988 crore in the preceding September quarter.
The third quarter performance was driven by strong demand for air travel, continued growth, and lower fuel costs. The airline’s revenue from operations rose 14% YoY to ₹22,111 crore, compared to ₹19,452 in the corresponding quarter of last year.
Shares of Interglobe Aviation Ltd ended at ₹4,395.15, up by ₹50.90, or 1.17%, on the BSE.
