National: IndiGo’s Fiscal Fumble: 117 Cr Penalty Looms
InterGlobe Aviation, the powerhouse behind IndiGo, just absorbed a major jolt from tax authorities. The Kochi Central GST Commissionerate slapped a Rs 117.52 crore penalty over disputed input tax credits, prompting swift disclosures to stock exchanges on a tense Tuesday.
This development arrives amid a separate scare for the airline, underscoring a day of heightened alerts in the skies.
Scrutiny on Past Credits
The order targets claims from fiscal years 2018-19 and 2021-22, where officials rejected the input tax credit availed by the company. A formal demand notice accompanied the penalty, totaling Rs 1,17,52,86,402 precisely.
Such reviews often hinge on compliance nuances, and this one has now escalated to formal enforcement.
Defiant Path Forward
Company executives remain undeterred, labeling the ruling as flawed and pinning strong odds on a favorable appeal. Legal experts are already gearing up to contest it in higher forums, drawing on tax advisory insights.
InterGlobe assured stakeholders that neither operations nor finances face material disruption from this episode, framing it as a procedural hurdle rather than a setback.
Shares Feel the Pinch
Trading screens reflected the unease, with InterGlobe shares sliding 1.64 percent to Rs 95 during intra-day sessions. Investors parsed the news against the carrier’s robust market position, weighing short-term volatility.
This dip comes as IndiGo navigates peak travel demands, yet underscores sensitivity to regulatory ripples.
Mid-Air Alert Adds Drama
Compounding the headlines, an IndiGo flight from Kuwait to Hyderabad veered off course early Tuesday. Flight 6E1234, carrying passengers bound for Rajiv Gandhi International Airport, touched down safely in Mumbai after a bomb threat email surfaced.
Security sweeps cleared the aircraft of any peril, confirming a hoax, while probes trace the anonymous tip’s origin.