IndiGo Challenges $13m Tax Credit Demand from Government

InterGlobe Aviation Financial Services (IFSC), a subsidiary of IndiGo Airlines, has received an INR1.18 billion (USD13.1 million) demand from the Joint Commissioner of Central Tax and Central Excise in Kochi after authorities disallowed input tax credits claimed for the 2019 and 2022 financial years. IndiGo said in a stock exchange filing that it plans to challenge the December 1 order, describing it as “erroneous” following consultations with tax advisers.

The carrier maintains it has a strong legal basis to contest the decision and stressed that the demand will have no material impact on its financial position, operations, or broader business activities. The disputed credits relate to input taxes offset against expenses, a common practice that has faced increased scrutiny from tax authorities in recent years.

This is not the first time IndiGo has confronted a tax dispute. In July, the airline won a separate case in which India’s customs department attempted to retrospectively impose integrated goods and services tax on aircraft and parts re-imported after overseas repairs. The latest challenge adds to the ongoing regulatory and compliance pressures facing India’s largest airline.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com

Tags: chaviation

IndiGo Challenges $13m Tax Credit Demand from Government

Related Posts