Indigo Receives ₹117.52 Crore Penalty Over Input Tax Credit Denial; Stock Price Drops by ~2%

New Delhi, December 3, 2025: InterGlobe Aviation, the parent company of IndiGo is in focus today as the Joint Commissioner of Central Tax and Central Excise CGST Kochi Commissionerate ordered a penalty of ₹117.52 crore on the company. The order which is associated with denial of input tax credit between FY19 and FY22 has attracted much attention in the market. The share of InterGlobe Aviation traded at ₹5,591.50 (down by 1.91%) at 01:30 PM. 

Details of the Tax Penalty Order

The regulatory filing of the company provides that the authorities have issued a demand order and the penalty stating that the ITC availed between FY19 and FY22 was inadmissible. The airline though has described the order as erroneous and that the findings of the department do not represent the realities on the ground in the operation and compliance processes at the airline.

Response And Legal Stand of the Company

The company stated that it will file an appeal against the order. As per the company, the refusal to grant ITC on certain inputs and the penalty thereon is erroneous and is subject to appeal in the tribunal. It has affirmed that it will challenge the order to the relevant authority and is sure of getting relief on the basis of law and facts.

Effects On Operations and Financials

The airline has made it clear that the order is not a significant effect on its financial status and business survival. The overall financial stability of the company is not affected by it, to this end, and day-to-day operations flight schedules and ongoing projects of the company are not impacted, as pointed out by IndiGo. 

Market Response and New Operational News

The shares of InterGlobe Aviation fell a bit in intra trading deals and dropped approximately 1.91% (trading at ₹5,591.50 around 01:30 PM). Despite a bit of setback today, the stock has managed to surged more than 21% in the past one year. The company’s PE ratio is 43.10 compared to the industrial average of 42.45. 

In the meantime IndiGo has just reinforced its domestic network adding new flights at Navi Mumbai International Airport and has declared its complete adherence to Airbus system upgrade in its A320-family aircraft.

The tax tussle will go through the appeals procedure and investors will be keen to get updated on the situation as the airline continues its steady operational course.

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