IndiGo Challenges Rs 117.52 Crore Input Tax Credit Penalty Imposed by Kerala CGST Authorities

IndiGo has announced its intention to contest a Rs 117.52 crore penalty imposed by tax authorities regarding input tax credit claims.

The airline received the penalty notice from the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate, Kerala, pertaining to the fiscal years 2018-19 through 2021-22.

According to the company's regulatory filing, tax authorities have rejected input tax credit (ITC) claimed by IndiGo and issued a demand order with accompanying penalties.

IndiGo firmly believes the order is erroneous and has stated it possesses a strong case on merits, supported by guidance from external tax consultants.

The carrier has further clarified that it will challenge the ruling before the appropriate regulatory authority, emphasizing that the penalty will not significantly impact its financial position, operational capabilities, or business activities.

Following this announcement, IndiGo's shares experienced a 1.60 percent decline, closing at Rs 5,697.70 per share on the stock market.