IndiGo said on Friday that it has been hit with a penalty of nearly Rs 59 crore in relation to GST for the financial year 2020-21, and the airline plans to challenge the order issued by the Additional Commissioner of CGST, Delhi South Commissionerate.

In a filing to the BSE, the airline disclosed that the penalty amounts to Rs 58,74,99,439 and that the department has raised a GST demand along with the penalty.

The company stated that it considers the order incorrect, noting that “the company believes that the order passed by the authorities is erroneous. Further, the company believes that it has a strong case on merits, backed by advice from external tax advisors.”

“Accordingly, the company will contest the same before the appropriate authority,” IndiGo said in the filing. It also clarified that there is no significant impact on its financials, operations or other activities.

Shares of IndiGo closed marginally higher at Rs 4,860.85 on the BSE on Friday.