Blue Dart Aviation Limited, a wholly owned subsidiary of Blue Dart Express Ltd, has been issued a Show Cause Cum Demand Notice by the Office of the Commissioner of GST and Central Excise, Chennai South Commissionerate. The notice, dated September 15, 2025, alleges tax dues amounting to approximately ₹420 crore for the period covering the financial years 2021-22 and 2022-23.
According to the notice, the authorities claim that Blue Dart Aviation incorrectly paid ₹365.58 crore in Goods and Services Tax (GST), comprising both Central GST (CGST) and State GST (SGST), under the Integrated GST (IGST) head during the aforementioned period. Additionally, the notice raises concerns about ₹54.55 crore in ineligible Input Tax Credit (ITC), which the authorities believe was claimed based on invoices issued from locations other than where the services were provided. Furthermore, ₹64.98 lakh in ITC related to materials written off in the company’s books has also been questioned.
The company has been asked to respond within 30 days to the Additional or Joint Commissioner of GST and Central Excise, Chennai South Commissionerate, explaining why these amounts should not be recovered. Blue Dart Aviation has stated that it is in the process of evaluating the matter and intends to submit its reply within the stipulated period.
Despite the magnitude of the demand, the company has expressed confidence that this issue will not have a significant impact on its financial performance, operations, or overall business activities. It has assured investors and stakeholders that it is engaging with the authorities and reviewing its tax filings to clarify the situation.
This development comes at a time when tax compliance and regulatory scrutiny in India have been increasingly stringent. The logistics sector, in particular, has faced greater scrutiny due to the complexity of supply chains and inter-state service provisions, making accurate tax filings and compliance more challenging.
The disclosure of this tax notice is expected to draw attention in the financial markets, with Blue Dart Express Ltd’s shares likely to be closely monitored on September 17, 2025. Analysts and investors are awaiting further updates from the company regarding its response to the notice and any potential implications for its business.
Blue Dart Aviation’s handling of this tax issue will likely set a precedent, especially for companies operating in highly regulated sectors with multiple tax jurisdictions. The case underscores the importance of robust tax compliance mechanisms and the need for detailed documentation to support claims such as Input Tax Credit, particularly in sectors involving cross-border or inter-state services.
As the company works toward resolving the matter, its assurance that the issue will not materially affect its operations or growth outlook may offer some reassurance to stakeholders. However, the resolution of such tax demands remains critical not only for Blue Dart’s reputation but also for its long-term business strategy in the logistics industry.
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