Indigo Faces Penalty Due To Input Tax Credit: Steps To Take If Penalty Is Imposed
Indian airline Indigo has been charged with a penalty of over Rs. 1.27 crore due to input tax credit-related discrepancies on Goods and Services Taxes. The airline said that it will challenge the order slapped by the GST Authority.
In a filing to the exchanges, the company’s parent, InterGlobe Aviation, said that it availed of input tax credit, which has been denied. The company also said that the demand order was received to pay the penalty along with interest from the Office of the Joint Commissioner of State Tax, Appeals. IV Bandra, Mumbai.
"The company believes that the order passed by the authorities is erroneous and it has a strong case on merits, backed by advice from external tax advisors," the company said in its filing.
The fine was imposed for the period of July 2017 to March 2018, which amounts to over Rs. 1.27 crore. The company also noted that while the demand will be contested, it will not impact the financials of the company.
Here are the steps if one receives a penalty on input tax credit availed, and what it means.
