IndiGo slapped with ₹58.75 crore tax notice amid DGCA crackdown

IndiGo announced on Friday that it has received a tax penalty notice totalling ₹ 58.75 crore from the Additional Commissioner of Central GST, Delhi South Commissionerate, for the financial year 2020–21. The company revealed this information in a stock exchange filing on Friday, indicating that the notice was issued on December 11 and pertains to issues identified during the department’s review of its tax submissions for that period.

The airline mentioned that it is currently assessing the notice's contents and will take appropriate actions in response, including considering legal options. IndiGo also stated that it has fully complied with tax regulations and plans to contest the penalty as advised by its legal and tax advisors.

The tax notice comes at a time when IndiGo is already facing a series of operational challenges that have disrupted the airline’s schedules and affected its service reliability. In recent weeks, IndiGo has encountered increasing pressure due to widespread delays, a significant rise in flight cancellations, and ongoing customer complaints regarding refunds and rebooking issues. This situation has highlighted considerable deficiencies in the airline’s capacity to maintain operational continuity, particularly during peak passenger volumes.

DGCA feels urgency

These difficulties prompted the Directorate General of Civil Aviation to intervene decisively. Earlier this week, the regulator mandated a five per cent reduction in IndiGo’s flight schedule, a measure intended to ensure that the airline does not operate more services than it can safely and reliably manage with its available resources.

The DGCA has also cautioned that no airline will be allowed to impose unnecessary hardship on passengers, indicating a stricter approach to operational compliance and customer service responsibilities. Officials have signalled that ongoing delays, sudden cancellations, or insufficient passenger support will lead to further regulatory actions.

For IndiGo, the tax penalty introduces an additional level of stress as it strives to stabilise its operations amidst regulatory oversight. The interplay of financial, operational, and compliance challenges has drawn attention to India’s largest airline, making the upcoming weeks crucial in assessing how successfully the carrier can rebuild trust with both regulators and passengers.