New blow to IndiGO which is facing crisis, now gets GST notice of Rs 58 crore; What is the whole matter?

GST Notice to IndiGo Airlines: There is a bad news for Indigo Airlines which has been going through a huge crisis for the last few days. Actually, the company has received a notice from the GST department. According to media reports, IndiGo (InterGlobe Aviation Ltd) has received a penalty notice of Rs 58.75 crore from the GST department for the financial year 2020-21. This order has been issued by the Additional Commissioner of CGST, Delhi South Commissionerate, which includes the demand for basic GST tax along with penalty.

However, Indigo has termed this notice as wrong and has announced to challenge it legally. IndiGo said in a BSE filing that this order is wrong and its argument against it is strong, which is also based on the advice of external tax advisors. The company has clarified that this notice will not have any impact on its financial position, daily operations or business activities.

Order for 10% reduction in winter schedule

Actually, this GST penalty case has come to light at a time when IndiGo is already facing operational challenges. DGCA had now ordered the airline to cut 10% of its winter 2025 schedule due to continuous cancellation of flights in the first week of December, which affected its operational efficiency. At the same time, the company’s CEO Peter Elbers was called to appear before the DGCA committee.

Company’s shares fell 16% in a month

On the other hand, if we talk about Indigo shares, on Friday the shares were trading at Rs 4,845 with a rise of 0.50 per cent. The stock has fallen more than 16 percent in the last one month. At present the market cap of the company is Rs 1.87 lakh crore.

Brokerage firm advised to buy shares

Meanwhile, brokerage Jefferies indigo shares The target price has been maintained at Rs 6,035 and ‘Buy’ Rating is given. Recent operational woes and rising costs may put pressure on near-term earnings, but the airline’s strong market share and international expansion should support it in the long run, according to the brokerage.

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Many flights canceled in last 15 days

Let us tell you, many Indigo flights have been canceled in the last 15 days. Due to which the passengers have to suffer huge losses. Indigo has also impacted the Indian domestic aviation sector. near indigo domestic aviation market Has more than 64 percent stake. Due to a sudden problem in the operational system, there was an atmosphere of chaos at different airports of the country.