GST Department Issues Rs 124 Crore Demand Notice to SpiceJet, Moves to Suspend Airline's Registration
Tax Demands and GST Cancellation Proceedings Against SpiceJet
The Goods and Services Tax (GST) Department has issued a tax demand of Rs 124.65 crore to budget carrier SpiceJet for allegedly failing to file GST returns for several months. The financially stressed airline is also facing proceedings for the cancellation of its GST registration.
According to officials, the tax demand was raised following a provisional assessment conducted under Section 62 of the CGST and SGST Acts, 2017. The airline allegedly failed to file returns within the prescribed timelines, resulting in repeated delays and alleged non-compliance.
Table: GST Demand Breakdown
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| Month | Demand Amount (in Rupees) |
|---|---|
| November | 44.44 crore |
| December | 43.79 crore |
| January | 12.19 crore |
| February | 12.10 crore |
| March | 12.12 crore |
GST authorities claim that SpiceJet had "consistently committed irregularities" in filing returns, with repeated submissions of late returns. Officials said a show-cause notice regarding cancellation of the airline's GST registration was issued on May 25, 2026, but the company has yet to clear 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.
Investor Takeaway
Investors should be cautious about the financial health of SpiceJet due to the tax demand and potential cancellation of GST registration.
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