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The Additional Commissioner of CGST, Delhi South Commissionerate has imposed a fine of more than ₹458 crore on the country’s largest airline IndiGo. The company said on Tuesday that this penalty is related to the assessment for the financial year 2018-19 to 2022-23 under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017.
According to the airline, the total GST demand is ₹458,26,16,980. The company said that the GST department has imposed tax demand, interest and penalty on the compensation received from the foreign supplier, and input tax credit has also been rejected.
The company said this penalty was wrong based on the opinion of external tax consultants. Indigo says that this order is against the law and it will challenge it in court. According to the company, this order will not have any major impact on its financial results, operations or other activities.
March 30: Income Tax imposed fine of ₹944.20 crore
it This is not the first time that tax controversy related to GST has come to light on IndiGo. Earlier on March 30 Income tax to the company A penalty order of ₹944.20 crore was sent. The company said that this penalty was imposed under Income Tax Act 270A for the assessment year 2021-22.
The airline described the order as ‘wrong and baseless’. According to IndiGo, this penalty was imposed by the Assessment Unit of the Income Tax Department. At the same time, an additional fine of ₹2.84 crore was imposed by the Joint Commissioner of Chennai. The dispute pertains to denial of input tax credit (ITC) due to discrepancies in financial records from 2018 to 2020.
Earlier, GST and Custom Department had also imposed fine.
- On January 6, Principal Commissioner (Customs) of Air Cargo Complex (Import) had imposed a fine of ₹2.17 crore on IndiGo after denying duty exemption on import of aircraft parts.
- On February 5, Indigo had received a tax demand notice of Rs 116 crore from the GST department.
- On January 15, the Customs department had imposed a fine of over ₹25 lakh on IndiGo in a case related to jet fuel duty.
- Joint Commissioner Office, Lucknow imposed a fine of ₹ 14 lakh 59 thousand on IndiGo for the financial year 2021-22.
Thousands of Indigo flights canceled due to crew shortage
In November and early December this year, IndiGo had to face problems related to operations on a large scale. In fact, the Directorate General of Civil Aviation (DGCA) had implemented new ‘Flight Duty Time Limit’ (FDTL) rules for the comfort of pilots.
The airline could not manage its crew and roster in a timely manner as per these rules. The result was that in the end of November and the first week of December, about 5,000 Indigo flights were canceled or delayed.
DGCA action: 10% reduction in winter schedule
After thousands of passengers got stranded and huge uproar, DGCA took a strict stand against IndiGo. The regulator directed IndiGo to cut its winter schedule by 10% to get operations back on track.
Apart from this, an inquiry committee has also submitted its confidential report to the ministry, which is likely to mention shortcomings in IndiGo’s planning and negligence of the management.
In early December, more than 5,000 IndiGo flights were canceled within six days.
The number of air passengers increased by 7%
Even though airlines are facing challenges, the number of air travelers in the country is continuously increasing. A total of 1.53 crore passengers traveled on domestic flights in November, which is about 7% more than last year. A total of 1,526 lakh people flew between January and November 2025, showing a growth of 4.26% on an annual basis.
Moody’s warning – fear of financial loss to the airline
Rating agency Moody’s has warned that IndiGo may suffer huge financial losses due to cancellation of flights. The decline in revenue, along with refunds to passengers and possible penalties from the government, could impact the airline’s profits.
In terms of market share, IndiGo is still India’s largest airline with 63% share, but a lot of questions have been raised due to service and staff management.
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Also read this news related to Indigo…
Indigo bid- apologizes to customers: 100% network restored; Government said- will take such action that it becomes an example
Amidst the Indigo flight crisis, the airline has responded to the DGCA notice. Indigo said that we regret this incident and apologize to our customers. He further said that we were talking to DGCA about the challenges of Flight Duty Time Limitation (FDTL) Phase II. Click here to read the full news…
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