IndiGo shares skid amid GST penalty

Share prices of indiGo’s parent company, InterGlobe Aviation, dropped 1.09% to Rs.4,380.70 apiece on the BSE today after the company informed exchanges related to penalties imposed by tax authorities. The aviation major has received two GST-related penalty orders worth Rs.115.86 crore, which are currently being contested.

At the time of reporting, IndiGo shares were trading 0.71% lower at Rs.4,384 apiece on the BSE, with a market cap of Rs.1,69,401.07 crore. The stock opened at Rs.4,450.00, against the previous closing price of Rs.4,415.25.

The GST department identified violations linked to services provided to offshore recipients, declaring that these do not qualify as an export of services. Furthermore, the company has denied input tax credit on certain services for FY 2017-18, citing discrepancies for years FY 2017-18 to FY 2019-20 as the reason behind denial.

Commissionerate, while the GST order for the remaining amount of Rs.2.84 crore was received by the Joint Commissioner of GST & Central Excise, Chennai South in Tamil Nadu. “The company is in process of contesting this Order before the appropriate appellate authority,” the company adds.

Source : https://www.fortuneindia.com/enterprise/indigo-shares-skid-amid-gst-penalty/120432