Blue Dart Express Limited reported that its wholly owned subsidiary, Blue Dart Aviation Limited, received a GST show cause notice of ₹27.1 crore from the Joint Commissioner, Chennai South Commissionerate, Central GST.

The notice, dated September 30, 2026, relates to the scrutiny of GST returns for Financial Years 2022-23 and 2023-24. The aggregate tax demand proposed comprises ₹21.7 crore for FY23 and ₹5.4 crore for FY24, along with applicable interest and penalty under the CGST/TNGST Act, 2017.

Allegations and regulatory basis

The notice was issued under Section 73 of the CGST/TNGST Act, 2017, as applicable to IGST under Section 20 of the IGST Act, 2017. The Joint Commissioner alleged several contraventions regarding input tax credit (ITC) and tax liability reporting.

The specific allegations include:

• Short payment of tax by lowering GST liability in GSTR-03B.
• Excess availment of ITC related to IGST on import of goods in GSTR-03B compared to IGST appearing in GSTR-02A.
• Excess availment of ITC in GSTR-03B over and above ITC appearing in GSTR-09 (Table 8A).
• Reconciliation differences in GSTR-09C between ITC reported in GSTR-09 and books of accounts/financial statements.
• Excess availment of GST ITC in contravention of Section 16(2) of the CGST Act, 2017.

Demand breakdown

Note: Figures are rounded to one decimal place for readability; exact amounts are ₹21,72,60,034 for FY23 and ₹5,37,10,935 for FY24.

Company response

Blue Dart Express stated that the matter is currently at the show-cause stage. The subsidiary will examine the contents of the notice and take appropriate steps, including furnishing its response in accordance with the law. The company disclosed this information pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Blue Dart Express plans to raise prices for its domestic services by 9-12%, effective January 1, 2027.

Price revision details

The upcoming tariff revision will apply to Blue Dart Express's domestic services. The company has announced a price increase in the range of 9-12%, set to take effect from January 1, 2027. The specific increase depends on the product and the customer's shipping profile.

Rationale and exemptions

The company stated that the annual price review accounts for changes in operating costs, including rising labour and utility expenses, as well as inflationary pressures. The revision aims to support continued investment in service quality, network capabilities, and technology infrastructure.

To mitigate immediate impact on new business, customers who sign up between October 1 and December 31, 2026, will be exempt from the upcoming price increase.

Balfour Manuel, Managing Director of Blue Dart, noted that reliable logistics are essential for competitiveness as India's economy grows. He emphasized that sustained investment in infrastructure is required to meet demand amid an evolving global trade environment. Dipanjan Banerjee, Chief Commercial Officer, added that the company is mitigating cost pressures through productivity improvements, network optimisation, and greater automation.