SpiceJet faces ₹124.65 cr GST demand, registration cancellation notice for return filing delays

Budget carrier SpiceJet has been served a tax demand of ₹124.65 crore by the Goods and Services Tax (GST) department for failing to file GST returns for several months, adding to the airline's mounting financial and regulatory challenges.

According to GST officials, the airline has repeatedly delayed filing its statutory returns, prompting authorities to initiate action under the Central Goods and Services Tax (CGST) Act and the State GST (SGST) Act, 2017. The department has also issued a show-cause notice proposing cancellation of SpiceJet's GST registration due to continued non-compliance.

Officials said the notice for cancellation of registration was issued on May 25, 2026. Despite the notice, the airline has yet to submit the pending GST returns.

The tax demand has been raised following a provisional assessment conducted under Section 62 of the CGST and SGST Acts, which allows authorities to assess tax liability when a taxpayer fails to furnish required returns despite repeated reminders.

According to the department, the total demand of ₹124.65 crore covers multiple tax periods. The largest liabilities relate to November and December, when the assessed dues stood at ₹44.44 crore and ₹43.79 crore, respectively. Additional demands include ₹12.19 crore for January, ₹12.10 crore for February, and ₹12.12 crore for March.

GST officials noted that SpiceJet's repeated delays and irregularities in return filing led to the assessment proceedings. They warned that failure to regularise compliance could result in further action under GST regulations.

"If SpiceJet does not promptly file its pending returns and comply with its statutory obligations under GST law, further action will be taken in accordance with the applicable rules," a GST official said.

The latest development comes at a time when SpiceJet has been working to stabilise its operations and strengthen its finances after facing multiple legal, regulatory and cash-flow challenges in recent years.

Cancellation of GST registration can create operational hurdles for businesses, affecting tax credits, vendor relationships and compliance requirements. However, companies are generally given an opportunity to respond to notices and rectify defaults before final action is taken.

SpiceJet officials could not be reached for comment despite repeated attempts.

The GST demand and registration cancellation proceedings represent another regulatory challenge for the airline as it seeks to improve its financial position and maintain operational continuity in a highly competitive aviation market.