IndiGo GST Shock: ₹458 Cr Tax Notice, Shares Drop

Shares of InterGlobe Aviation, the parent company of IndiGo, traded lower on December 31 after the airline disclosed a major GST penalty notice of over ₹458 crore. The development affected investor sentiment.

Stock Trades Lower After Notice

At around 9:50 AM, IndiGo shares were trading at ₹4,995 on the National Stock Exchange. The stock slipped 0.46% after hitting an intraday low of ₹4,982. The market reacted quickly to the announcement.

GST Demand for Multiple Financial Years

In a regulatory filing, IndiGo confirmed that the GST department has raised a demand for FY2019 to FY2023. It relates to compensation received from a foreign supplier and the denial of input tax credit. The order includes tax, interest, and penalty.

IndiGo maintains that the demand is erroneous and not in accordance with the law. The airline plans to challenge the order through legal channels. A similar matter for FY2018 is already under dispute.

Additional Penalty Notice Issued

IndiGo has also received a separate GST penalty notice of ₹14.59 lakh for FY2022 from the Joint Commissioner’s office in Lucknow. The airline stated that neither notice is expected to materially impact its financials or operations.

Operational Pressures Continue

Reports suggest IndiGo has recently increased pilot allowances ahead of January 1. This follows operational disruptions, flight cancellations, and a temporary 5% capacity cut ordered by the DGCA.

With challenges building, questions remain about how IndiGo will handle financial and operational pressures going into 2026.