IndiGo Faces Rs 13.28 Lakh GST Demand from Punjab Tax Authorities

InterGlobe Aviation Limited, the parent company of IndiGo Airlines, has announced that it received a tax demand order from the Punjab Tax Department. The notification was disclosed to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on 25 December 2025.

The order, issued by the Assistant Commissioner of State Taxes, imposes a penalty of ₹13,28,255. This penalty relates to a Goods and Services Tax (GST) demand for the financial year 2021-22. IndiGo informed the stock exchanges that the company received this order on 24 December 2025.

IndiGo challenges the GST demand

In its regulatory filing, InterGlobe Aviation stated that it disputes the demand, labelling the order as "erroneous". The airline is confident in its position, asserting that it has a robust case, supported by advice from external tax consultants. The filing indicated, "Accordingly, the Company will contest the same before the appropriate authority."

Addressing concerns over the financial implications of the penalty, the company assured stakeholders that the GST demand would not significantly affect its financial performance or operations. The filing highlighted that there would be no substantial impact on the company's financials or activities as a result of this order.

Flight disruptions due to weather conditions

In a separate update, IndiGo issued a travel advisory concerning potential flight disruptions due to dense fog and low visibility in Bengaluru. The airline is actively monitoring weather conditions and is committed to ensuring the safety and comfort of its passengers.

IndiGo's advisory stated, "Flight timings have been changed due to low visibility and fog in Bengaluru. We are closely monitoring the weather and making every effort to ensure you reach your destination safely and smoothly." The airline encouraged passengers to stay informed about their flight statuses through official channels, providing a link for updates.

In addition to the penalty from Punjab, InterGlobe Aviation faces further scrutiny. The company previously received a ₹118 crore penalty notice from the Joint Commissioner of Central Tax and Central Excise in Kochi, Kerala, for allegedly claiming wrongful input tax credits for the financial years 2018-19.

The airline's challenges in relation to GST are part of a broader trend, as other companies in India also face tax-related demands. For instance, Bajaj Electricals Limited recently disclosed a ₹14.08 crore demand from GST authorities in Punjab, and Vodafone Idea Limited experienced a penalty order exceeding ₹4.15 crore from the West Bengal tax department.

IndiGo's proactive approach in responding to both tax demands and operational challenges reflects its commitment to maintaining transparency and ensuring customer safety in its operations.