SpiceJet slapped with INR 124.65 crore GST demand, faces registration cancellation

NEW DELHI — The Goods and Services Tax (GST) Department has issued a tax demand of INR 124.65 crore to low-cost carrier SpiceJet for allegedly failing to file GST returns for several months, while the airline also faces proceedings for cancellation of its GST registration.

According to officials, the department has issued a show-cause notice proposing cancellation of SpiceJet’s GST registration over repeated delays and alleged non-compliance in filing statutory returns.

The tax demand was raised following a provisional assessment conducted under Section 62 of the Central Goods and Services Tax (CGST) Act and State Goods and Services Tax (SGST) Act, 2017, after the airline allegedly failed to file returns within prescribed timelines.

GST authorities said SpiceJet had consistently committed irregularities in filing returns and repeatedly submitted returns beyond due dates.

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As per the assessment, the department raised a demand of INR 44.44 crore for November, INR 43.79 crore for December, INR 12.19 crore for January, INR 12.10 crore for February and INR 12.12 crore for March.

Officials said the show-cause notice regarding cancellation of the airline’s GST registration was issued on May 25, 2026, but the company has yet to complete pending compliance requirements.

“If SpiceJet does not promptly file its pending returns and ensure compliance with its statutory obligations under the GST law, further action will be taken as per the rules,” an official said.

SpiceJet had reported a consolidated net loss of INR 621 crore for the quarter ended September 30, 2025, compared with a loss of INR 458 crore in the year-ago quarter.

The airline’s revenue from operations fell 13 per cent to INR 792 crore from INR 915 crore in the corresponding quarter of the previous fiscal, according to an exchange filing.