The GST department has issued a tax demand of ₹124.65 crore to struggling airline SpiceJet for allegedly failing to file GST returns for several months, according to officials. The demand has been structured across multiple months, with ₹44.44 crore for November, ₹43.79 crore for December, ₹12.19 crore for January, ₹12.10 crore for February, and ₹12.12 crore for March. According to officials, the tax demand was raised following a provisional assessment conducted under Section 62 of the CGST and SGST Acts, 2017, after the airline allegedly failed to file returns within the prescribed timelines. GST authorities stated that SpiceJet had "consistently committed irregularities" in filing returns and had repeatedly submitted them late, leading to the provisional assessment. As per ET Now, the department broke down the total demand month by month, with the airline having not merely missed one filing but built up a pattern of late and irregular submissions over several months.
Initiating action against the airline for failing to file GST returns on time, the GST department has issued a show-cause notice proposing cancellation of SpiceJet's GST registration, as reported by officials. The show-cause notice was issued on May 25, 2026, regarding the cancellation of the company's GST registration. Despite this notice, the company has yet to clear its pending compliance requirements, with GST officials stating that if SpiceJet does not promptly file its pending returns and ensure compliance with its statutory obligations under the GST law, further action will be taken as per the rules. The issuance of a show-cause notice for cancellation of GST registration has added further pressure on the financially stressed airline, which has been dealing with operational challenges and legal disputes in recent years. Losing that registration would be a serious operational blow, effectively disrupting the airline's ability to conduct normal business transactions under the tax framework.
The GST trouble lands on top of a financial situation that has been deteriorating for some time. SpiceJet posted a consolidated net loss of ₹621 crore for the quarter ending September 30, 2025, a sharp jump from the ₹458 crore loss recorded in the same period a year earlier. Operating revenue fell to ₹792 crore from ₹915 crore over the same period, a decline of roughly 13 percent that signals shrinking business alongside rising losses. On Friday, SpiceJet shares closed at ₹12.75 on the Bombay Stock Exchange, slipping 0.47 percent on the day. The stock has been trading at distressed levels for an extended period, reflecting investor skepticism about the airline's recovery path.
Despite several attempts, officials of SpiceJet could not be contacted for comment on the tax demand and registration cancellation proceedings. The airline's inability to respond to official communications highlights the ongoing compliance challenges facing the company in its financial operations. The lack of immediate compliance has raised concerns within regulatory circles regarding the company's internal financial controls and tax governance mechanisms. Industry analysts believe that such large-scale tax demands could further strain the airline's cash flow situation, especially at a time when the aviation sector is already facing pressure from fluctuating fuel costs, foreign exchange volatility, and intense competition. The deadline for filing pending returns and responding to the show-cause notice has not been made public, but the department's language suggests patience is running thin.
