Rs 944 Crore Penalty Slapped on IndiGo; Airline Terms Notice 'Baseless and Flawed'

New Delhi (The Uttam Hindu): India's largest carrier, IndiGo Airlines, has received a Goods and Services Tax (GST) notice of Rs 944.20 crore for the assessment year 2021-22. The notice stems from an assessment order under Section 143(3) of the Income Tax Act, which the airline claims was dismissed and remains pending adjudication. According to IndiGo's filing, the Income Tax Authority passed the order imposing the penalty based on an erroneous understanding that the company's appeal against the assessment order was dismissed. However, IndiGo maintains that the appeal is still alive and pending adjudication. The airline has strongly opposed the order, calling it "erroneous and frivolous." IndiGo intends to contest the decision legally, asserting that the ruling does not align with existing tax laws.

Despite the significant tax demand, IndiGo believes it will not have a substantial impact on its financial health, operations or other business activities. The airline is confident that the order will not materially affect its performance and has stated its intention to take appropriate legal remedies against the order. The development comes as a significant challenge for IndiGo, but the airline remains committed to contesting the decision and upholding its rights under the law.