New Delhi: InterGlobe Aviation on Friday told exchanges it has received an order in GST appeal proceedings from the office of the Joint Commissioner of State Tax (Appeals), Bandra, denying input tax credit (ITC) availed by the company for the period July 2017 to March 2018 and raising a demand along with interest and penalty.
In a regulatory filing under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) rules, the airline said the authority has imposed a penalty of ₹1,27,41,663. The company added that it believes the order is erroneous and that it has a strong case on merits, backed by advice from external tax advisors, and will contest the matter before the appropriate forum.
Crucially for investors, InterGlobe Aviation said it does not expect any significant impact on its financials, operations or other activities from the order, even as it proceeds with the legal challenge.
The disclosure was made to National Stock Exchange of India and BSE Limited, in line with listing requirements. The period under dispute covers the early phase of GST rollout, a timeframe that has seen multiple industry-wide interpretational disputes around credits and documentation.