IndiGo faces Rs 13 lakh penalty related to GST

IndiGo aircraft.

Credit: Reuters Photo

New Delhi: IndiGo has been slapped with a penalty of little over Rs 13 lakh in relation to the Goods and Services Tax (GST), and the company will contest the ruling.

The Office of the Assistant Commissioner of State Tax, Excise and Taxation Department, Punjab has imposed the penalty of Rs 13,28,255 pertaining to the financial year 2021-22.

"The department has raised GST demand along with penalty. The company believes that the order passed by the authorities is erroneous. Further, the company believes that it has a strong case on merits, backed by advice from external tax advisors.

"Accordingly, the company will contest the same before the appropriate authority," InterGlobe Aviation, the parent of IndiGo, said in a regulatory filing on Thursday.

It also said there was no significant impact on financials, operations or other activities of the company.