IndiGo's Parent Company Faces Significant Tax Penalty

InterGlobe Aviation, the parent company of IndiGo airlines, has received a hefty tax penalty of ₹117.52 crore related to input tax credit denials for previous fiscal years. The company plans to contest this order, asserting that it has a strong case. Despite the penalty, InterGlobe maintains that it will not significantly affect its financials or operations. Additionally, the airline has recently expanded its routes from Navi Mumbai International Airport and completed necessary updates on its aircraft fleet. This news comes amid a diversion of one of its flights due to a bomb threat, raising concerns about safety and operational challenges.

By Narendra Chaudhary Dec 2, 2025, 13:33 IST

InterGlobe Aviation Receives Tax Penalty

On December 2, InterGlobe Aviation, the parent company of IndiGo airlines, announced that it has been issued a penalty order amounting to approximately ₹117.52 crore by the Joint Commissioner of Central Tax and Central Excise from the CGST Kochi Commissionerate.

This penalty, totaling ₹1,17,52,86,402, pertains to the denial of input tax credit for the fiscal years 2018–19 and 2021–22, as stated in the airline's exchange filing.

"The tax department has rejected the input tax credit (ITC) claimed by the company and has issued a demand order along with the penalty," the filing noted.

"The company contends that the authorities' decision is incorrect and believes it has a robust case supported by external tax advisors," it added.

As a result, the company plans to challenge the order before the relevant authority.

InterGlobe Aviation emphasized that this order will not significantly affect its financial status, operations, or other business activities.

"There is no substantial impact on the company's financials, operations, or other activities," it stated in its regulatory filing.

In the stock market, shares of InterGlobe Aviation fell by ₹95, or 1.64%, during intra-day trading, opening nearly unchanged at ₹5,794.50 each.

On November 29, the airline announced new direct routes and increased flight frequencies from Navi Mumbai International Airport (NMIA), enhancing connectivity to major domestic locations like Coimbatore, Chennai, Vadodara, and North Goa.

Earlier this week, IndiGo confirmed that it has completed mandatory updates on the Airbus system across its A320-family fleet, following disruptions in global flight operations due to a software issue affecting these aircraft.

All 200 aircraft have now been fully updated and are compliant with the required standards.

Additionally, an IndiGo flight from Kuwait to Hyderabad was diverted to Mumbai earlier today after a bomb threat was reported to authorities at Hyderabad Airport.

Official sources verified that flight 6E-1234 was redirected midair after a threat message was received at the customer support center of Rajiv Gandhi International Airport (RGIA) at 5:12 a.m.