GST authorities slap Rs 458 crore penalty on IndiGo

IndiGo faces major GST penalties but says it has a strong legal case and will challenge the orders

December 31, 2025

IndiGo said it will contest a ₹458 crore GST demand imposed by tax authorities, calling the order erroneous and legally unsustainable

IndiGo disputes GST order for FY 2019–23

India’s largest airline IndiGo on Tuesday said tax authorities have imposed a Goods and Services Tax (GST) demand and penalty totalling over ₹458 crore, a move the airline said it will strongly contest.

In a regulatory filing, IndiGo said the Additional Commissioner of CGST, Delhi South Commissionerate, has passed an assessment order under Section 74 of the Central Goods and Services Tax Act, 2017, covering the period from FY 2018–19 to FY 2022–23. The total GST demand, including interest and penalty, amounts to ₹458,26,16,980.

According to the filing, the GST department has raised the demand over compensation received from a foreign supplier and the alleged wrongful availment of input tax credit (ITC).

“The GST department has passed an order imposing GST demand along with interest and penalty on compensation received from foreign supplier and denial of input tax credit. The company strongly believes that the order passed by the GST department is erroneous and not in accordance with law,” IndiGo said, adding that its position is backed by advice from external tax advisors.

The airline said it will pursue appropriate legal remedies against the order and noted that it is already before the Commissioner (Appeals) in a similar matter pertaining to FY 2017–18.

IndiGo further said that since it intends to contest the order, it does not expect any significant impact on its financials, operations, or other activities.

Separately, IndiGo said the Office of the Joint Commissioner, Lucknow, has imposed a penalty of ₹14.59 lakh for the FY 2021–22 period. The department has denied input tax credit and raised a demand along with interest and penalty.

InterGlobe Aviation, the parent company of IndiGo, said it believes the Lucknow order is also erroneous and that it has a strong case on merits. The company said it will contest the order before the appropriate authority and reiterated that there would be no material impact on its business or financial position.

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