Relief for Blue Dart Express unit; ₹420.14-crore GST demand dropped

Blue Dart Aviation Ltd (BDAL), a wholly-owned subsidiary of Blue Dart Express, has received significant relief in a goods and services tax (GST) matter after tax authorities substantially dropped a large demand raised against the company.

In a regulatory disclosure, the company said the office of the Commissioner of GST & Central Excise passed an adjudication order on December 30, 2025, in connection with a show-cause-cum-demand notice for the period from April 2021 to March 2023. The notice had proposed

a total GST demand of ₹420.79 crore, excluding interest and penalties. The order was received by the company via email on December 31, 2025.

Following detailed submissions by BDAL, the adjudicating authority set aside the bulk of the proposed demand. Of the total amount raised, demands aggregating to ₹420.14 crore, largely linked to issues relating to the determination of place of supply and availment of input tax credit, were dropped.

However, the authority confirmed a smaller demand of ₹64.98 lakh towards input tax credit on materials written off in the company’s books of accounts.

Interest of ₹41.72 lakh and a penalty of ₹6.49 lakh were also imposed. BDAL said it has voluntarily accepted and discharged the confirmed tax and interest amounts to bring closure to the matter and avoid prolonged litigation.

The order also formally disposed of the show-cause notice issued by the Chennai South Commissionerate. The company said it does not expect the outcome of the adjudication to have any material impact on its financials, operations or other business activities.

Shares of Blue Dart Express ended marginally lower on Wednesday, December 31, by 0.23% at ₹5,530 on the NSE.

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