InterGlobe Aviation Limited, the parent company of budget carrier IndiGo, has disclosed receiving a substantial GST assessment order with a penalty of ₹458.26 crores from the Additional Commissioner of CGST-Delhi South Commissionerate. The company made this disclosure through a regulatory filing submitted under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) on Tuesday.

GST Assessment Order Details

The assessment order was received on December 29, 2025, and pertains to an assessment under Section 74 of the Central Goods and Services Tax Act, 2017. The order covers an extended assessment period spanning from FY 2018-19 to FY 2022-23.

Nature of Tax Violations

According to the regulatory disclosure, the tax authority has raised the demand—including interest and penalty—on two primary issues. The first relates to compensation received from a foreign supplier, while the second involves the disallowance of certain input tax credits claimed by the company during the assessment period.

Company's Legal Response Strategy

InterGlobe Aviation has strongly contested the GST department's order, categorically stating that it is "erroneous and not in accordance with law." The company has taken expert legal advice and intends to challenge the demand through appropriate appellate mechanisms available under the law.

Financial Impact and Operations

Despite the substantial size of the tax demand, IndiGo has indicated that it does not expect any material impact on its financial position, operations, or cash flows. The company emphasized its commitment to pursuing legal remedies as available under the law. The airline noted that it is already engaged in appellate proceedings before the Commissioner (Appeals) in a related matter concerning an earlier financial year.

Industry Context

The disclosure comes amid heightened tax scrutiny faced by large corporates, including airlines, over GST treatment of cross-border transactions and compensation arrangements. IndiGo has, in recent months, reported other tax-related notices, which it has consistently said are being contested through appropriate legal channels.

Interglobe Aviation 's IndiGo brand witnessed a decline in its domestic market share during October, with the airline's share dropping to 63.6% from the previous 65.6%. This represents a decrease of 2 percentage points for India's largest airline by passenger volume.

Market Share Performance

The following table illustrates IndiGo's market share movement:

Industry Context

The decline in market share suggests increased competitive pressure in India's domestic aviation market. IndiGo has traditionally maintained a dominant position in the sector, making this reduction noteworthy for industry observers and stakeholders.

Market Position

Despite the decline, IndiGo continues to hold a substantial majority share of the domestic aviation market at 63.6%. The airline remains the market leader, though the gap with competitors appears to have narrowed during the October period.

The market share data reflects the dynamic nature of India's aviation sector, where airlines compete intensively for passenger traffic across domestic routes.