The parent business of budget carrier IndiGo, InterGlobe Aviation Ltd, has been fined ₹115.87 crore by the GST authorities. The fines assessed were ₹113.02 crore by the Additional Commissioner of Central Goods & Service Tax — Delhi South Commissionerate and ₹2.84 crore by the Joint Commissioner of GST & Central Excise – Chennai South – Tamil Nadu.
The infractions, according to the authorities, are principally connected to the imposition of GST on services given to offshore clients, which the department has ruled is not an export of services. Furthermore, the firm was denied input tax credit (ITC) on some services for the fiscal year 2017-18, and there are discrepancies in ITC applications for 2017-18 through 2019-20. InterGlobe Aviation has indicated that it is disputing these decisions with the proper appellate authorities and that the penalties and measures will have no major impact on the company’s finances, operations, or other activities.
Interglobe Aviation’s December quarter consolidated net profit fell 18% YoY to ₹2,449 crore from ₹2,998 crore in the previous year. The airline reported a loss of ₹988 crore in the previous September quarter. The third quarter performance was boosted by high demand for air travel, continuous expansion, and decreasing fuel prices. The airline’s income from operations increased by 14% YoY to ₹22,111 crore, compared to ₹19,452 in the same quarter previous year.