SpiceJet Faces Rs 124.65 Crore GST Demand, Registration Cancellation Threat Looms

New Delhi: Budget airline SpiceJet has come under fresh regulatory pressure after the Goods and Services Tax (GST) Department issued a tax demand of Rs 124.65 crore and initiated proceedings to cancel the carrier’s GST registration over alleged non-compliance with return filing requirements.

According to officials, the GST authorities have served a show-cause notice proposing cancellation of the airline’s registration, citing repeated delays and irregularities in filing mandatory GST returns.

The tax demand was raised following a provisional assessment carried out under Section 62 of the Central Goods and Services Tax (CGST) Act and the State Goods and Services Tax (SGST) Act, 2017. Authorities said the action was taken after SpiceJet allegedly failed to submit GST returns within the prescribed deadlines for several months.

Officials noted that the airline had repeatedly filed returns beyond due dates, prompting the department to assess tax liabilities for the affected periods.

The assessment includes a demand of Rs 44.44 crore for November, Rs 43.79 crore for December, Rs 12.19 crore for January, Rs 12.10 crore for February and Rs 12.12 crore for March, taking the total demand to Rs 124.65 crore.

The show-cause notice regarding cancellation of GST registration was reportedly issued on May 25, 2026. However, authorities said the airline has yet to complete the required compliance measures.

A GST official stated that if SpiceJet fails to file its pending returns and fulfil its statutory obligations under GST laws, further action will be initiated in accordance with the rules.

The latest development adds to the financial challenges facing the airline. For the quarter ended September 30, 2025, SpiceJet reported a consolidated net loss of Rs 621 crore, compared to a loss of Rs 458 crore during the same period a year earlier.

The carrier’s revenue from operations also declined by 13 per cent to Rs 792 crore from Rs 915 crore in the corresponding quarter of the previous financial year, according to regulatory filings.

Meanwhile, SpiceJet shares ended Friday’s trading session at Rs 12.75 on the Bombay Stock Exchange (BSE), down 0.47 per cent from the previous close.

The airline is yet to publicly respond to the GST department’s latest action.
 

With inputs from IANS