IndiGo Slapped With ₹1.27 Crore Penalty, Plans to Challenge Order
IndiGo receives ₹1.27 crore penalty notice, know details here: IndiGo has been fined over ₹1.27 crore related to GST input tax credit. The company has said it will challenge the order. In a filing to the BSE, the airline’s parent company, InterGlobe Aviation, said it has been denied GST input tax credit by the Office of the Joint Commissioner of State Taxes (Appeals) in Bandra, Mumbai, and has been asked for interest and penalty.
The company believes the order passed by the authorities is incorrect and has a strong case. A total penalty of ₹1,27,41,663 has been imposed on the company. This is for the period from July 2017 to March 2018. IndiGo also said that the order has not had any significant impact on its finances, but it will challenge it before the appropriate authority.
Following this notice, IndiGo shares will be closely watched on Monday. The stock is currently trading at ₹4,929.85 on the BSE. The company has a market cap of ₹1.90 lakh crore. The stock has declined 16 percent in three months. The face value of the stock is ₹10. Its 52-week adjusted high on the BSE is ₹6,225.05, and its adjusted low is ₹4,161.
In January, Motilal Oswal had a ‘buy’ rating on the stock with a target price of ₹6,100 per share. Prabhudas Lilladher had a ‘hold’ rating and a target price of ₹5,186 per share, and ICICI Securities had a ‘buy’ rating and a target price of ₹5,680 per share.
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