IndiGo hit With Rs 58.75-crore GST demand, CEO Pieter Elbers called in by DGCA over lapses today

IndiGo has been issued a GST demand and penalty totalling Rs 58.75 crore for FY 2020–21, according to a stock exchange filing on Friday. The Additional Commissioner of CGST, Delhi South Commissionerate, raised the demand citing alleged tax discrepancies.

The airline said it considers the order “erroneous” and intends to challenge it. IndiGo added that it has a “strong case on merits,” supported by external tax advisors, and will contest the matter before the appropriate authority.

Even as the tax dispute surfaces, IndiGo is already under regulatory scrutiny for its massive operational crisis earlier this month. The Directorate General of Civil Aviation (DGCA) on Friday summoned CEO Pieter Elbers to explain the disruptions that led to the cancellation of over 4,000 flights across major cities, affecting thousands of passengers.

The regulator has also suspended four Flight Operations Inspectors (FOIs) responsible for overseeing IndiGo’s safety and operational compliance. Preliminary findings pointed to lapses in oversight that contributed to the airline’s nationwide breakdown.

IndiGo, which commands over 60% of India’s domestic aviation market, is currently the only profit-making airline in the sector, as per government data. The Ministry of Civil Aviation reported that IndiGo booked a Rs 7,253 crore profit in FY 2025, while peers--Air India (Rs 3,976 crore loss), Air India Express (Rs 5,832 crore loss), Akasa Air (Rs 1,986 crore loss), and Alliance Air (Rs 691 crore loss)—continued to bleed.

Following the prolonged disruptions, the airline said it has initiated all refunds for passengers impacted by unplanned cancellations. For severely affected customers, IndiGo announced travel vouchers worth Rs 1,000, valid for 12 months, in addition to compensation mandated under government norms—Rs 5,000 to Rs 10,000, depending on flight block time, for cancellations within 24 hours of departure.