Blue Dart Express Limited , a leading logistics company in India, has disclosed that its wholly-owned subsidiary, Blue Dart Aviation Limited (BDAL), has received a substantial tax demand notice from the Goods and Services Tax (GST) authorities.

Details of the Demand Notice

The Office of the Commissioner of GST and Central Excise issued a Show Cause Cum Demand Notice (SCN) to BDAL on September 15, 2025. The notice alleges discrepancies in GST payments for the period from April 2021 to March 2023 and demands a total sum of approximately ₹420 crore.

Breakdown of the Demand

The GST demand is comprised of several components:

1. Misclassification of Tax: ₹365.58 crore (₹182.79 crore each for CGST and SGST) for GST allegedly paid under the wrong head (IGST instead of CGST & SGST).
2. Ineligible Input Tax Credit: ₹54.56 crore (IGST) for allegedly availing ineligible Input Tax Credit based on invoices issued by other locations in different states.
3. Unreconciled ITC: ₹0.65 crore (IGST) related to Input Tax Credit on materials subsequently written off in the books of accounts.

Additional Penalties and Interest

The notice also mentions the possibility of additional penalties under various sections of the CGST Act, 2017, and applicable interest on the demanded amounts.

Company's Response

Blue Dart Express Limited has stated that BDAL is currently evaluating the matter and will submit its reply within the prescribed time period of 30 days. The company has informed the stock exchanges that it does not anticipate any significant impact on its financials, operations, or other activities at this time.

Implications and Next Steps

This development highlights the ongoing scrutiny of GST compliance in the logistics sector. Blue Dart and its subsidiary now face the task of addressing the allegations and potentially contesting the demand notice.

Investors and stakeholders will be keenly watching how this situation unfolds, as it could have implications for the company's financial position if the demand is upheld. However, it's important to note that the receipt of a show cause notice is part of the standard procedure and does not necessarily imply any wrongdoing by the company.

Blue Dart Express Limited has assured transparency by promptly disclosing this information to the stock exchanges, in compliance with SEBI regulations. The company's management will likely provide further updates as the situation develops and after a thorough assessment of the demand notice.

Blue Dart Express Limited, a leading express air and integrated transportation company in South Asia, has announced the appointment of Sagar Patil as its new Chief Financial Officer (CFO), effective August 1, 2025. The decision was approved by the company's Board of Directors during a recent meeting held in Mumbai.

Extensive Experience in Finance

Sagar Patil, a Chartered Accountant by qualification, brings over 25 years of extensive experience in finance to his new role. He has been an integral part of Blue Dart for more than eight years, having held key leadership positions including Corporate Controller, Head of Corporate Accounts, and most recently, Interim CFO.

Impressive Career Background

Prior to his tenure at Blue Dart, Patil held significant leadership roles across various industries. His distinguished career includes positions at prominent companies such as DHL Express India, Burger King India, Shell Lubricants, and Owens Corning India.

Leadership's Confidence

Balfour Manuel, Managing Director of Blue Dart Express, expressed confidence in Patil's appointment, stating, "We are delighted to have Sagar take on the role of Chief Financial Officer at Blue Dart. His deep understanding of Blue Dart's business, combined with strong financial and strategic acumen, positions him well to lead the company's finance function."

Manuel further added, "I am confident that under his stewardship, our finance function will continue to drive strategic value, enabling sustained growth and excellence for Blue Dart."

Patil's Vision for Blue Dart

Upon his appointment, Sagar Patil expressed gratitude for the opportunity and shared his vision for the role. He stated, "Blue Dart has played a significant role in my professional journey, and I am deeply grateful for the opportunity presented to me. Having been associated with Blue Dart for many years, it is a moment of great pride to be entrusted with the responsibility of leading the company's finance function."

Patil also emphasized his commitment to the company's growth, saying, "I look forward to contributing further to the company's growth by driving robust financial strategies and supporting our continued leadership in the logistics industry."

Strengthening Financial Leadership

This strategic appointment underscores Blue Dart's commitment to bolstering its financial leadership as the company pursues its strategic goals. With Patil's extensive experience and deep understanding of the business, Blue Dart aims to further solidify its position as a leader in the logistics industry.

As Blue Dart continues to expand its reach across over 56,400 locations in India and leverage its connection to DHL Group's global network, Patil's financial expertise is expected to play a crucial role in driving the company's future growth and success.