SpiceJet Faces ₹124.65 Crore GST Demand, Registration Cancellation Proceedings Initiated

Budget airline SpiceJet has been served a tax demand of ₹124.65 crore by the Goods and Services Tax (GST) Department over alleged delays in filing GST returns.

Officials said the demand follows a provisional assessment conducted under provisions of the CGST and SGST Acts, 2017.

The development adds to the challenges faced by the financially stressed airline, which is already dealing with operational and financial pressures.

Authorities have also started proceedings that could lead to the cancellation of the airline’s GST registration.

Returns Allegedly Not Filed On Time

According to GST officials, the tax demand was raised after SpiceJet allegedly failed to file GST returns within the prescribed deadlines for multiple months.

The department claimed that the airline repeatedly delayed return filings and did not comply with statutory timelines.

Officials stated that the action was taken under Section 62 of the GST law, which allows authorities to conduct provisional assessments when returns are not filed.

The department alleged that the airline had consistently shown irregularities in its compliance record.

Break-Up Of The ₹124.65 Crore Demand

The total demand of ₹124.65 crore covers multiple months.

According to officials, the largest portion relates to November, for which a demand of ₹44.44 crore was raised.

For December, the department demanded ₹43.79 crore.

The demand for January stood at ₹12.19 crore, while February accounted for ₹12.10 crore.

For March, authorities raised a demand of ₹12.12 crore.

Together, these amounts add up to the total tax liability identified by the department through its provisional assessment.

Cancellation Notice Issued

Apart from the tax demand, GST authorities have also issued a show-cause notice proposing cancellation of SpiceJet’s GST registration.

Officials said the notice was issued on May 25, 2026, citing repeated delays and alleged non-compliance with GST filing requirements.

The department has asked the airline to explain why its GST registration should not be cancelled.

According to officials, the company has yet to complete all pending compliance requirements.