IndiGo Fined ₹117.52 Crore Over Input Tax Credit Denial

New Delhi | Dec 2, 2025 | Sky Link Times

InterGlobe Aviation
, the operator of India’s largest airline IndiGo, has been hit with a penalty order of ₹117.52 crore issued by the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate. The development was confirmed on Tuesday through the company’s regulatory filing.


IndiGo Fined ₹117.52 Crore Over Input Tax Credit Denial
IndiGo Fined ₹117.52 Crore Over Input Tax Credit Denial

CGST Denies ITC for Two Financial Years

According to the official filing, the penalty—totalling ₹1,17,52,86,402—is related to the denial of input tax credit (ITC) claimed by IndiGo for the financial years 2018–19 and 2021–22.

The department has raised a demand and imposed a penalty for what it believes is wrongful availing of ITC by the airline.
IndiGo, however, maintains that the order is “erroneous,” adding that its position is supported by external tax advisors.

IndiGo Plans to Challenge the Order

The airline clarified that it will legally contest the penalty:

> “The company believes that the order passed by the authorities is erroneous. The company has a strong case on merits, backed by advice from external tax advisors,” the filing stated.

InterGlobe Aviation also assured investors and customers that the penalty will not significantly impact its financials, operations, or other business activities.

Market Reaction: Stock Dips 1.64%

Shares of InterGlobe Aviation Limited dropped by ₹95 (1.64%) during intra-day trading following the announcement. The stock opened almost flat at ₹5,794.50 per share before sliding.


Also Read:https://skylinktimes.in/bjp-criticises-pradyot-debbarmans-one-north-east-campaign/


Operational Updates: New Routes and Technical Compliance

Despite the tax setback, IndiGo continues expanding its network. On November 29, the airline announced new direct routes and increased frequencies from the newly operational Navi Mumbai International Airport (NMIA). New connections include Chennai, Coimbatore, Vadodara and North Goa.

IndiGo also confirmed that it has completed the mandatory Airbus system enhancement update across its A320-family fleet, following a global alert over a software issue affecting multiple operators. All 200 aircraft in its fleet are now compliant.

Security Alert: Kuwait–Hyderabad Flight Diverted

In a separate incident earlier today, an IndiGo flight (6E-1234) travelling from Kuwait to Hyderabad was diverted to Mumbai after authorities at Rajiv Gandhi International Airport (RGIA) received a bomb threat message at 5:12 a.m.

The aircraft landed safely in Mumbai, and further investigation is underway, according to official sources.


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