NEW DELHI: IndiGo has received a tax order from the Additional Commissioner of CGST, Delhi South Commissionerate, raising a GST demand of ₹458.26 crore for multiple financial years.
According to an exchange filing by IndiGo, the tax authority has raised the demand, including interest and penalty, on compensation received from a foreign supplier and by disallowing certain input tax credits claimed by the company.
The order has been passed under Section 74 of Central Goods and Service Tax Act, 2017 for FY-2018-19 to FY 2022-23.
“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, backed by advice from external tax advisors,” said InterGlobe Aviation Ltd, IndiGo’s parent firm.
Accordingly, the company said that it will contest the same and shall take appropriate legal remedies against the aforesaid order. The Company is already in appeal before the Commissioner (Appeals) in similar matter for FY2017-18.