Finances 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 line with GST officers, the airline has repeatedly delayed filing 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 present-trigger notice proposing cancellation of SpiceJet’s GST registration as a consequence of continued non-compliance.
Officers stated the notice for cancellation of registration was issued on Might 25, 2026. Regardless of the notice, 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 line with the division, the overall demand of ₹124.65 crore covers a number of tax intervals. 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 filing led to the evaluation proceedings. They warned that failure to regularise compliance may end in 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 can be taken in accordance with the relevant guidelines,” a GST official stated.
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 money-movement 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 chance to reply to notices and rectify defaults earlier than ultimate motion is taken.
SpiceJet officers couldn’t be reached for remark regardless of repeated makes an attempt.
The GST demand and registration cancellation proceedings signify 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.
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