SpiceJet slapped with ₹125cr GST demand, registration may be canceled
What's the story
The Goods and Services Tax (GST) Department has issued a tax demand of ₹124.65 crore to budget airline SpiceJet. The action comes after the company allegedly failed to file its GST returns for several months. The department has also issued a show-cause notice proposing cancellation of SpiceJet's GST registration over repeated delays and alleged non-compliance in filing returns.
Non-compliance details
Airline 'consistently committed irregularities' in filing returns: GST department
The GST authorities have accused SpiceJet of "consistently committed irregularities" in filing its returns and doing so late. The tax demand was raised after a provisional assessment under Section 62 of the CGST and SGST Acts, 2017. This was done after the airline allegedly failed to file returns within the prescribed timelines.
Tax assessment
Breakdown of tax demand for different months
The GST department has broken down the tax demand for different months. The company owes ₹44.44 crore for November, ₹43.79 crore for December, ₹12.19 crore for January, ₹12.10 crore for February, and ₹12.12 crore for March. Despite being served a show-cause notice on May 25, 2026, SpiceJet has yet to fulfill its pending compliance requirements with the department's demands and notices regarding the cancellation of its GST registration.
Potential consequences
SpiceJet yet to respond to these developments
An official from the GST department has warned that 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. Despite several attempts, officials of SpiceJet could not be contacted for a response to these developments.