IndiGo shares skid amid GST penalty
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Share prices of IndiGo’s parent company, InterGlobe Aviation, dropped 1.09% to ₹4,380.70 apiece on the BSE today after the company informed exchanges related to penalties imposed by tax authorities. The aviation major has received two GST-related penalty orders worth ₹115.86 crore, which are currently being contested.
At the time of reporting, IndiGo shares were trading 0.71% lower at ₹4,384 apiece on the BSE, with a market cap of ₹1,69,401.07 crore. The stock opened at ₹4,450.00, against the previous closing price of ₹4,415.25.
The GST department identified violations linked to services provided to offshore recipients, declaring that these do not qualify as an export of services. Furthermore, the company has denied input tax credit on certain services for FY 2017-18, citing discrepancies for years FY 2017-18 to FY 2019-20 as the reason behind denial.
This company informed the exchanges that this information was received a day earlier, on February 4, 2025. Out of ₹115.86 crore, GST amounting to ₹113.02 crore was received by the Additional Commissioner of Central Goods & Service Tax - Delhi South Commissionerate, while the GST order for the remaining amount of ₹2.84 crore was received by the Joint Commissioner of GST & Central Excise, Chennai South in Tamil Nadu.
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“The company is in process of contesting this Order before the appropriate appellate authority,” the company adds.
The company further stated that there is no material impact on financials, operations or other activities of the company.
Recently in January, InterGlobe Aviation recorded a 18% drop in its consolidated net profit, totalling ₹2,449 crore for the quarter ending December 2024, compared to ₹2,998 crore during the same period of the previous year.