IndiGo, India’s largest airline by market share, has been fined more than ₹13 lakh in a Goods and Services Tax (GST) matter related to the financial year 2021–22. The airline has said it does not agree with the decision and plans to challenge the order through legal means. Despite the penalty, IndiGo has clarified that the issue will not affect its financial health or daily operations.
The penalty was imposed by the Office of the Assistant Commissioner of State Tax, Excise and Taxation Department in Punjab. According to reports by news agency PTI, the total amount of the penalty is ₹13,28,255. The tax department has raised a GST demand along with a penalty, stating that there were issues related to tax payments for the said financial year.
IndiGo has responded by saying that it believes the order passed by the authorities is incorrect. The airline said it has examined the matter carefully and feels that its position is strong. It also said that external tax experts have supported its view, giving the company confidence to contest the ruling.
The airline’s parent company, InterGlobe Aviation, confirmed the decision in a regulatory filing. It stated that the company will approach the appropriate legal authority to challenge the order. IndiGo also assured investors and passengers that the penalty would not have any significant impact on its financial position, business activities, or operations.
IndiGo has made it clear that it does not accept the GST demand raised by the Punjab tax department. In a statement quoted by PTI, the airline said that the order is “erroneous” and does not reflect the correct interpretation of tax laws. The company believes that it has followed all required procedures and complied with GST regulations during the 2021–22 financial year.
The airline added that it has received expert advice from independent tax consultants. Based on this advice, IndiGo is confident that its case has merit. As a result, it plans to contest the penalty before the relevant authority using the legal options available under the law.
InterGlobe Aviation, which operates IndiGo, said that it regularly deals with tax-related assessments as part of normal business operations. The company stressed that disputes of this nature are not unusual for large corporations and are handled through proper legal channels. It also reassured stakeholders that the current issue is limited in scope and does not pose any major risk.
IndiGo is the largest airline in India by market capitalisation and operates the biggest domestic flight network in the country. Over the years, it has also expanded its international presence, connecting Indian cities to destinations across Asia, the Middle East, and beyond. Given its size and scale, the airline frequently deals with regulatory and tax matters across multiple states.
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The GST penalty comes at a time when IndiGo has recently faced operational challenges. Earlier this month, the airline experienced widespread disruptions due to a mix of operational issues and adverse weather conditions. Hundreds of flights were delayed or cancelled, causing inconvenience to passengers at several airports across India.
During that period, many travellers reported long waits, missed connections, and uncertainty about flight schedules. The disruptions led to criticism on social media and raised questions about the airline’s preparedness during peak travel periods.
However, IndiGo has said that the situation has now improved. The airline stated on Wednesday that its operations have stabilised and that it is fully prepared to manage the high travel demand expected during the upcoming holiday season. It added that lessons learned from the recent disruptions have helped it strengthen planning and coordination.
As part of its recovery plan, IndiGo has reduced its winter flight schedule by 10%. This move was made in line with a directive from the Ministry of Civil Aviation. The aim of the reduction is to stabilise operations and ensure better reliability while managing challenges such as fog, weather disruptions, and crew availability during winter.
The airline said that with forecasts indicating a harsher winter, it is taking extra precautions. These include adjusting flight schedules, improving ground coordination, and deploying additional resources where needed. IndiGo emphasised that maintaining service reliability remains a top priority.
Despite recent challenges, IndiGo remains confident about its ability to handle passenger demand. It continues to focus on restoring customer trust and improving travel experiences. The airline has also taken steps to support affected passengers, including offering assistance and compensation in cases of severe disruption.
In conclusion, while IndiGo has been fined over ₹13 lakh in a GST-related matter, the airline has firmly stated that it will contest the order and that the issue will not affect its business or financial stability. At the same time, it says its operations are back on track after recent disruptions and that it is well prepared for the busy holiday travel season ahead.
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