InterGlobe Aviation Ltd, the operator of IndiGo, has received a tax penalty order amounting to ₹458 crore (₹458,26,16,980) from the Additional Commissioner of Central GST, Delhi South Commissionerate. The company received the communication on December 29, 2025, according to a stock exchange filing.
The order covers five financial years, from FY2018-19 to FY2022-23, and has been issued under Section 74 of the Central Goods and Services Tax Act, 2017, which deals with cases involving alleged tax shortfall and related penalties.
The GST department has raised the demand on compensation received by the airline from a foreign supplier. It has also disallowed certain input tax credits claimed by the company during the assessment period.
The penalty amount of ₹458 crore includes tax, interest, and penalty components. The company has not disclosed a detailed split of these amounts across individual years.
In its regulatory disclosure, InterGlobe Aviation said it does not agree with the assessment order. The company stated that, based on advice from external tax consultants, it believes the demand is not in line with existing tax law.
The airline has said it will contest the order and take legal steps as permitted under the GST framework.
The company also disclosed that it is already in appeal before the Commissioner (Appeals) in a similar matter relating to FY2017-18. This indicates that the current order is part of a longer-running tax dispute involving earlier periods.
No update was provided on the status or timeline of the earlier appeal.
InterGlobe Aviation stated that it does not expect the order to have a significant impact on its financial position or operations at this stage. Since the matter will be challenged, the company has not indicated any immediate payment arising from the order. The airline said its business activities continue as usual.
Read More: IndiGo To Raise Pilot Allowances Following Significant Flight Cancellations!
As of December 31, 2025, 09:36 am, InterGlobe Aviation (Indigo) share price was trading at ₹ 4,999, a 0.38% decline from the previous closing price.
The GST penalty adds to IndiGo’s pending tax matters linked to earlier financial years. The final outcome will depend on appellate proceedings, which are yet to be concluded.
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Published on: Dec 31, 2025, 11:25 AM IST
Team Angel One
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