In a massive blow to the struggling budget carrier SpiceJet, the Goods and Services Tax department has issued a hefty tax demand of ₹124.65 crore. The stringent action comes after the airline consistently failed to file its statutory GST returns for several consecutive months.
Taking the enforcement a step further, tax authorities have also slapped the airline with a show-cause notice threatening to cancel its GST registration. According to senior officials, SpiceJet has repeatedly committed irregularities and submitted its mandatory filings late. Left with no alternative, the department initiated a provisional assessment under Section 62 of the CGST and SGST Act, 2017, to lock in the massive outstanding amount.
A month-wise breakdown released by the tax department reveals severe defaults across the winter and spring seasons. The highest liabilities were recorded at ₹44.44 crore for November and ₹43.79 crore for December. Meanwhile, the demands for January, February, and March hovered consistently at just over ₹12 crore each.
The official show-cause notice regarding the potential cancellation of SpiceJet’s registration was served on May 25, 2026. However, authorities note that the cash-strapped airline has still not cleared its backlog or filed the pending returns.
Warning of stricter statutory penalties, a senior GST official stated that if SpiceJet does not promptly ensure compliance, further legal action will follow. Observers note that losing GST registration could paralyze the airline’s daily commercial operations. Multiple attempts to contact SpiceJet representatives for a comment on the escalating crisis went unanswered.
