CHENNAI: IndiGo has disclosed on Friday that it received a tax penalty notice amounting to Rs 58.75 crore from the Additional Commissioner of Central GST, Delhi South Commissionerate, for the financial year 2020–21. The company announced the development in a stock exchange filing on Friday, stating that the notice was issued on December 11 and relates to matters identified during the department’s review of its tax filings for that period. The airline said it is currently evaluating the contents of the notice and will take appropriate steps in response, including exploring legal options. IndiGo added that it has been fully compliant with tax regulations and intends to contest the penalty as advised by its legal and tax experts.
The tax notice arrives at a time when IndiGo is already grappling with a series of operational disruptions that have stretched the airline’s schedules and strained its service reliability. Over the past several weeks, IndiGo has faced mounting pressure due to widespread delays, a sharp rise in flight cancellations and persistent customer complaints related to refunds and rebooking issues. The situation has exposed significant gaps in the airline’s ability to maintain operational continuity, especially at a time of high passenger volumes.
These challenges prompted the Directorate General of Civil Aviation to step in decisively. Earlier this week, the regulator ordered a mandatory five per cent reduction in IndiGo’s flight schedule, a move aimed at ensuring that the airline does not operate more services than it can safely and reliably handle with its available resources. The DGCA has also warned that no airline will be permitted to inflict avoidable hardship on passengers, signalling a tougher stance on operational compliance and customer-service obligations. Officials have indicated that continued delays, abrupt cancellations or inadequate passenger support will trigger further regulatory intervention.
For IndiGo, the tax penalty adds another layer of pressure as it attempts to stabilise its operations while navigating regulatory scrutiny. The combination of financial, operational and compliance-related challenges has cast a spotlight on India’s largest carrier, making the coming weeks critical in determining how effectively the airline can restore confidence among both regulators and passengers.
