In fresh trouble for India’s largest airline, IndiGo informed the stock exchanges that a penalty of nearly ₹59 crore linked to goods and services taxes (GST) has been imposed on the domestic carrier.According to the filing issued on Friday, 12 December, the airline said that the additional Commissioner of CGST, Delhi South Commissionerate, has levied a fine of ₹58,74,99,439 for the financial year 2020-21. “The department has raised GST demand along with a penalty,” IndiGo noted.The latest development comes amid significant disruptions in IndiGo’s operations, including hundreds of flight cancellations and delays over the past few days, primarily due to crew shortages and various other factors.Also Read | Can’t cap airfares for entire year, says Civil Aviation ministerWhat does IndiGo plan to do next?Calling the order “erroneous”, IndiGo plans to contest it before the appropriate authorities.“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,” the filing read.The airline further assured that the order has no significant impact on the company’s financials, operations, or other activities.IndiGo share priceThe airline informed the exchanges regarding the penalty order following market hours on Friday, 12 December. Shares of Interglobe Aviation, IndiGo’s parent, closed 0.86% higher at ₹4,860.85 on the BSE on Friday.Also Read | IndiGo moves Delhi HC for ₹900-cr GST refund from customs for re-imported partsIndiGo crisisIndiGo has cancelled over 5,000 flights this month due to a significant crew shortage caused by its inability to implement new regulations for pilots.The airline had earlier pointed out some preliminary factors contributing to the disruption, including recent amendments to the Flight Duty Time Limitations (FDTL) order.Earlier, the Directorate General of Civil Aviation (DGCA) had issued a show-cause notice to CEO Pieter Elbers and COO Isidore Porqueras after several flight cancellations. The airline requested additional time, stating that it is “realistically not possible to pinpoint the exact cause(s)” at present, given the “complexity and vast scale of operations”.Meanwhile, the IndiGo CEO apologised to people whose flights were suddenly cancelled or delayed for different reasons. “Thousands of you could not travel, and we are profusely apologetic about that, ” he said.IndiGo appoints veteran aviation expertIndiGo’s board appointed veteran aviation expert John Illson-led Chief Aviation Advisors LLC to carry out the “root cause analysis of the recent operational disruption”.“Chief Aviation Advisors LLC, led by Captain John Illson, veteran aviation expert, to conduct an independent expert review and assessment of the recent operational disruption and the contributing factors. The objectiv in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. 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IndiGo hit with ₹59 crore GST penalty amid service disruptions, airline to challenge the order
