InterGlobe Aviation Limited, the parent company of India's largest airline, IndiGo, has received a significant GST assessment order from the Additional
Commissioner of CGST-Delhi South Commissionerate. The order, issued under Section 74 of the Central Goods and Service Tax Act, 2017, imposes a demand of Rs 458.26 crore (including GST, interest, and penalty) for the financial years 2018-19 to 2022-23. IndiGo receives Rs 458 crore demand notice from GST According to the exchange filing, the demand primarily stems from two issues, including the imposition of GST on compensation received by the company from a foreign supplier and the disallowance of input tax credit (ITC) claimed during that period. In a regulatory filing submitted to the Bombay Stock Exchange (BSE) on December 30, 2025, IndiGo disclosed receiving the order on December 29, 2025. The company has strongly disagreed with this assessment. "The company strongly believes that the order passed by the GST department is erroneous and not in accordance with law, backed by advice from external tax advisors," the company said in an exchange filing. "Accordingly, the Company will contest the same and shall take appropriate legal remedies against the aforesaid order." IndiGo further noted that it is already pursuing an appeal before the Commissioner (Appeals) in a similar matter pertaining to FY 2017-18, indicating a pattern in the tax disputes. The airline stated that the order "does not have any significant impact on financials, operations or other activities of the Company" due to its decision to challenge the demand.
IndiGo Pilot Allowance Increase
IndiGo has hiked allowances for pilots by up to Rs 2,000 with effect from January 1, weeks after the country's largest airline faced severe flight disruptions due to pilot rostering challenges, sources said on Monday.
A lack of adequate planning in implementing the revised Flight Duty Time Limitations (FDTL) norms, which permit a lesser number of night landings for a pilot, has been attributed as a key reason for the disruptions that have forced the airline to cancel more than 1,600 flights on a single day.
Against the backdrop of new norms necessitating the deployment of more pilots for night operations, IndiGo has revised higher allowances doled out to the pilots.
Details of the Allowance Hikes
The hikes, ranging from as little as Rs 25 to Rs 2,000, will be for various allowance categories, including domestic layover, deadhead and night. Also, pilots will be eligible for tail-swap allowance, sources told news agency PTI.
Generally, tail-swap refers to replacing a scheduled aircraft with a different aircraft. The sources also said that the tail-swap allowance was not provided earlier, and the hikes will be effective from January 1.
