The dispute centres around input tax credits, which businesses can claim on the Goods and Services Tax (GST) for taxes paid on inputs. IndiGo maintains that it has complied with the relevant tax regulations and disputes the penalties that have been imposed.

The airline's move to challenge these penalties underscores its commitment to resolving the tax credit issues through the appropriate legal channels. IndiGo's legal team is preparing to address the matter in court, seeking to overturn the penalties and clarify the tax credit claims process.

This legal challenge is part of IndiGo?s broader strategy to ensure compliance with tax regulations while addressing any discrepancies in the tax credit claims. The outcome of this dispute could have implications for the airline?s financial operations and its handling of tax-related matters in the future.