By Admin 
Indigo GST Notice: There is no sign of any end to the troubles for the country’s largest airline company Indigo. The company is already facing problems. Now another trouble has come from above. A demand notice of Rs 58,74,99,439 has been sent to the company for the financial year 2020-21.
IndiGo said on Friday that it has received a tax penalty notice of Rs 58.75 crore from the Additional Commissioner of CGST, Delhi South Commissionerate. This order includes GST along with penalty. However, the airline has also said that it will challenge this order.
The company considered the order wrong
The company has considered this order wrong and said that it plans to challenge it. For this, advice is also being taken from external tax consultants. In the information given to BSE, Indigo stressed that this notice is not expected to have any significant impact on its financial status, daily operations and business activities. Indigo has faced such investigations before also. However, this notice has been sent to the company at a time when it is already going through a critical phase.
The company is facing crisis
Since the first week of December, Indigo has been facing continuous flight cancellations, which has created chaos in the airline industry. This GST notice sent to the company at a time of operational and financial pressure is no less than a challenge in itself.
Meanwhile, DGCA is busy investigating the IndiGo crisis to get to the bottom of it and find out the root causes, hence IndiGo CEO Peter Elbers was called to appear before a committee of DGCA officials on 12 December. The situation is now improving slowly as compared to before.
Brokerage reduced target price
Meanwhile, global brokerage Jefferies has reduced its target price for IndiGo’s parent company InterGlobe Aviation to Rs 6,035, but maintained ‘buy’ rating. The firm said that recent operational issues and rising expenses are likely to put pressure on short-term earnings, but IndiGo’s strong market leadership and ongoing international expansion will continue to support a positive long-term outlook. By 1:30 pm on Friday, the stock was seen trading at Rs 4,846.50, up 0.58 per cent.
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