Blue Dart Aviation GST Demand Slashed from ₹420 Crore to ₹6.5 Crore
Blue Dart Express subsidiary Blue Dart Aviation Limited received major relief as GST authorities reduced the original demand from ₹420.79 crore to just ₹6.50 crore. The adjudicating authority dropped most allegations related to tax misclassification and input tax credit issues after reviewing detailed submissions. The company voluntarily paid the revised demand along with interest and penalty totaling ₹1.13 crore to avoid prolonged litigation.

*this image is generated using AI for illustrative purposes only.
Blue Dart Express Limited has announced a significant positive development regarding the GST demand notice issued to its wholly-owned subsidiary, Blue Dart Aviation Limited (BDAL). The adjudicating authority has substantially reduced the original demand from ₹420.79 crore to just ₹6.50 crore, marking a major relief for the logistics company.
Original GST Demand Details
BDAL had initially received a Show Cause Cum Demand Notice from the Office of the Commissioner of GST and Central Excise on September 15, 2025. The notice covered the period from April 2021 to March 2023 and proposed a substantial demand across three main issues:
| Issue Type: | Original Demand Amount |
|---|---|
| Misclassification of Tax (CGST & SGST): | ₹365.58 crore |
| Ineligible Input Tax Credit (IGST): | ₹54.56 crore |
| Unreconciled ITC: | ₹0.65 crore |
| Total Original Demand: | ₹420.79 crore |
Adjudication Outcome
Following detailed submissions and explanations by BDAL, the adjudicating authority issued its order on December 30, 2025. The outcome was overwhelmingly favorable for the company, with most allegations being dismissed:
| Component: | Amount (₹) |
|---|---|
| Total Original Demand: | 42,07,88,656 |
| Amount Set Aside: | 42,01,38,856 |
| Revised Demand: | 64,98,000 |
| Interest: | 41,71,807 |
| Penalty (10% of demand): | 6,49,800 |
| Total Payment Made: | 1,13,19,607 |
Key Issues Resolved
The adjudicating authority dropped significant portions of the original demand after reviewing BDAL's submissions. The two major issues that were completely set aside included problems related to determination of place of supply and availment of input tax credit, which together accounted for over ₹420 crore of the original demand.
Company's Strategic Response
To avoid protracted litigation and ensure closure of the matter, BDAL voluntarily accepted and discharged the revised demand of ₹64.98 lakh along with applicable interest of ₹41.72 lakh. The company made this decision without prejudice to its submissions on the merits of the case.
Financial Impact Assessment
Blue Dart Express Limited has confirmed that neither the company nor BDAL anticipates any significant impact on their financials, operations, or other activities from this resolution. The final settlement amount represents less than 0.3% of the original demand, demonstrating the effectiveness of the company's defense strategy.
This positive resolution removes a major regulatory overhang for Blue Dart Express Limited and provides clarity on the GST compliance matter that had been pending since September 2025.
Historical Stock Returns for Blue Dart Express
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.59% | -2.18% | +0.82% | -18.15% | -13.04% | +35.99% |

































