Price range provider SpiceJet has been served a tax demand of ₹124.65 crore by the Items and Providers Tax (GST) division for failing to file GST returns for a number of months, including to the airline’s mounting monetary and regulatory challenges.
In response to GST officers, the airline has repeatedly delayed submitting its statutory returns, prompting authorities to provoke motion below the Central Items and Providers Tax (CGST) Act and the State GST (SGST) Act, 2017. The division has additionally issued a show-cause discover proposing cancellation of SpiceJet’s GST registration on account of continued non-compliance.
Officers mentioned the discover for cancellation of registration was issued on Might 25, 2026. Regardless of the discover, the airline has but to submit the pending GST returns.
The tax demand has been raised following a provisional evaluation performed below Part 62 of the CGST and SGST Acts, which permits authorities to evaluate tax legal responsibility when a taxpayer fails to furnish required returns regardless of repeated reminders.
In response to the division, the full demand of ₹124.65 crore covers a number of tax durations. The biggest liabilities relate to November and December, when the assessed dues stood at ₹44.44 crore and ₹43.79 crore, respectively. Further calls for embody ₹12.19 crore for January, ₹12.10 crore for February, and ₹12.12 crore for March.
GST officers famous that SpiceJet’s repeated delays and irregularities in return submitting led to the evaluation proceedings. They warned that failure to regularise compliance may lead to additional motion below GST laws.
“If SpiceJet doesn’t promptly file its pending returns and adjust to its statutory obligations below GST regulation, additional motion will likely be taken in accordance with the relevant guidelines,” a GST official mentioned.
The most recent improvement comes at a time when SpiceJet has been working to stabilise its operations and strengthen its funds after dealing with a number of authorized, regulatory and cash-flow challenges in recent times.
Cancellation of GST registration can create operational hurdles for companies, affecting tax credit, vendor relationships and compliance necessities. Nonetheless, corporations are typically given a possibility to answer notices and rectify defaults earlier than remaining motion is taken.
SpiceJet officers couldn’t be reached for remark regardless of repeated makes an attempt.
The GST demand and registration cancellation proceedings symbolize one other regulatory problem for the airline because it seeks to enhance its monetary place and preserve operational continuity in a extremely aggressive aviation market.
