Blue Dart Express Limited has informed stock exchanges that a major Goods and Services Tax (GST) demand raised on its wholly owned subsidiary, Blue Dart Aviation Limited (BDAL), has been substantially set aside by the adjudicating authority. The update follows an order passed on December 30, 2025, which was received by the company via email on December 31, 2025.
The matter relates to a Show Cause Cum Demand Notice issued under Section 73(1) of the CGST Act, 2017 and TNGST Act, 2017 for the period from April 2021 to March 2023. The original notice proposed a GST demand aggregating to ₹420.78 crore, excluding applicable interest and penalties, primarily on issues linked to the determination of place of supply and the availment of input tax credit.
After examining detailed submissions and explanations provided by BDAL, the adjudicating authority dropped a substantial portion of the proposed demand. An amount of ₹420.13 crore, along with related interest and penalty, was set aside. This included the complete withdrawal of GST demands on alleged intra-state supplies as well as the proposed reversal of input tax credit on invoices issued by BDAL offices in other states.
However, the authority confirmed a limited demand of ₹64.98 lakh relating to input tax credit on materials written off in the company’s books of accounts. Along with this, interest of ₹41.71 lakh and a penalty of ₹6.49 lakh, equivalent to 10 percent of the confirmed tax demand, were imposed. To bring the matter to closure and avoid prolonged litigation, BDAL voluntarily accepted and discharged the confirmed tax and interest amount prior to the final order.
According to the disclosure made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, the final order has disposed of the show cause notice in full. The company clarified that the remaining confirmed amount has already been paid through Form DRC-03 and that the penalty has been levied strictly in line with the provisions of the CGST and IGST Acts.
