Blue Dart Express Faces ₹420 Crore Show Cause Notice
On Tuesday, September 16, Blue Dart Express announced that its wholly owned subsidiary, Blue Dart Aviation Limited, has received a show cause notice amounting to ₹420 crore under Section 73(1) of the CGST Act, 2017. This notice was issued by the Office of the Commissioner of GST and Central Excise on September 15 and pertains to alleged tax dues for the period from April 2021 to March 2023.
The demand notice claims that ₹365.58 crore was incorrectly paid under the Integrated Goods and Services Tax (IGST) rather than the appropriate CGST and SGST. Furthermore, it alleges that the company availed itself of ineligible Input Tax Credit (ITC) worth ₹54.55 crore based on invoices issued from other locations. It also highlighted an additional ₹64.98 lakh as ITC credit linked to materials that have since been written off in the firm’s books.
Blue Dart Aviation is required to respond to the Additional or Joint Commissioner of GST & Central Excise, Chennai South Commissionerate, within 30 days of receiving the notice. The company is currently evaluating the situation and plans to submit its reply within the prescribed timeframe. They have indicated that they do not foresee any significant impact on their financials, operations, or other activities as a result of this notice.
Stock Performance
In market activity, shares of Blue Dart closed 0.62% higher at ₹5,737 apiece on the National Stock Exchange (NSE) on Tuesday, although this announcement was made after market hours. The stock has gained 0.04% over the week but has recorded a 9.01% loss over the past three months. Year-to-date, it has seen a decline of 16.05%.
The stock hit a yearly low of ₹5,365 on April 7, 2025, and reached a 52-week high of ₹9,488.70 per share nearly a year ago on September 17, 2024. As of September 16, 2025, Blue Dart Express’s total market capitalization was reported at ₹13,612.72 crore according to NSE data.
Q1 Results
In its latest financial disclosure, Blue Dart Express reported a consolidated net profit decline of 8.5% year-on-year (YoY), amounting to ₹48.83 crore for the June quarter of FY26, down from ₹53.42 crore in the same quarter of the previous year. However, the company’s revenue from operations increased by 7.39%, rising to ₹1,441.92 crore compared to ₹1,342.71 crore in Q1FY25.
As the company navigates the recent challenges presented by the show cause notice, stakeholders continue to monitor its responses and future financial performance closely.
