Blue Dart Express on Tuesday said that its wholly owned subsidiary, Blue Dart Aviation Limited, has received a show cause cum demand notice worth ₹420 crore from the Office of the Commissioner of GST and Central Excise.
The notice, issued on September 15 under Section 73(1) of the CGST Act, 2017 and TNGST Act, 2017, pertains to alleged tax dues for the period between April 2021 and March 2023.
Allegations in the Notice
According to Blue Dart’s exchange filing, the tax authorities have raised multiple claims, including:
- Wrong tax payment: ₹365.58 crore was allegedly paid under the wrong head of Integrated Goods and Services Tax (IGST) instead of Central GST (CGST) and State GST (SGST).
- Ineligible ITC: The company is accused of availing input tax credit worth ₹54.55 crore “based on invoices issued by other locations situated.”
- ITC on written-off material: Another ₹64.98 lakh is flagged as input tax credit related to materials that were subsequently written off in the firm’s accounts.
Next Steps for the Company
The notice requires Blue Dart Aviation to present its case before the Additional or Joint Commissioner of GST & Central Excise, Chennai South Commissionerate, within 30 days of receiving the communication.
Blue Dart Aviation said it is carefully evaluating the matter and will file its reply within the stipulated timeframe. The company emphasized that it does not expect any material impact on its financials, operations, or other business activities as a result of the notice.
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