InterGlobe Aviation Limited has received a penalty order of ₹14,59,527 from tax authorities in Lucknow, which the company disclosed under regulatory requirements on December 30, 2025. The penalty relates to input tax credit claims for the financial year 2021-22.

Penalty Details and Authority

The order was issued by the Office of the Joint Commissioner, Lucknow, Uttar Pradesh, with the company receiving communication on December 29, 2025. The penalty amount covers denied input tax credit claims along with associated interest charges.

Nature of Tax Dispute

The tax department has denied input tax credit that InterGlobe Aviation had availed and subsequently raised demand along with interest and penalty charges. This action represents a disagreement between the company and tax authorities regarding the legitimacy of certain tax credit claims made during FY 2021-22.

The company has provided details of the violation as alleged by the authorities, though it maintains that its position on the input tax credit claims was appropriate and legally sound.

Company's Response Strategy

InterGlobe Aviation has expressed confidence in its position regarding the disputed tax credits. The company believes the order passed by the authorities contains errors and that it has a strong case on merits. This assessment is supported by advice from external tax advisors who have reviewed the matter.

The airline plans to contest the penalty order before the appropriate appellate authority, indicating its intention to pursue all available legal remedies to challenge the decision.

Financial Impact Assessment

According to the company's disclosure, the penalty order will not have significant impact on its financial position, operations, or other business activities. This suggests that while the penalty amount is substantial, it falls within manageable limits for the airline's overall financial health.

The disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with investors and stakeholders regarding material developments affecting the company.

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.