Amid flight cancellation crisis, IndiGo on Friday faced another blow as the airline has been imposed with a penalty of nearly Rs 59 crore in relation to GST and the airline said it will contest the order, according to a regulatory filing on Friday. The Additional Commissioner of CGST, Delhi South Commissionerate, has imposed the penalty of Rs 58,74,99,439 on the airline for the financial year 2020-21. In a filing to the BSE, IndiGo said the department has raised GST demand, along with penalty.
"The company believes that the order passed by the authorities is erroneous. Further, the company believes that it has a strong case on merits, backed by advice from external tax advisors. Accordingly, the company will contest the same before the appropriate authority," it said.
Airline says no impact on finance, operations
Further, the airline said there is no significant impact on financials, operations or other activities. Shares of IndiGo closed marginally higher at Rs 4,860.85 on the BSE on Friday.
IndiGo says it is operating over 2,000 flights
In the meantime, IndiGo said it is operating over 2,000 flights on Friday as per its revised "scaled down" schedule. Under the winter schedule, which commenced in the last week of October and will run through the last week of March next year, IndiGo was allowed to operate 15,014 flights per week, or 2,144 per day, on domestic routes.
"IndiGo is set to operate over 2,000 flights today, as per its revised scaled-down schedule," the airline said. On Friday, the airline said it operated over 1,950 flights with just four cancellations, due to unfavourable weather, with all affected customers promptly informed to avoid inconvenience, adding all its 138 operational destinations are connected.
IndiGo on Thursday reported an on-time performance of 84.5 per cent from six metro airports - Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad, according to the Ministry of Civil Aviation website.
Also Read:
