Daijiworld Media Network - New Delhi
New Delhi, May 30: Budget airline SpiceJet has been served a tax demand of Rs 124.65 crore by Goods and Services Tax (GST) authorities for alleged non-compliance in filing statutory returns, while also facing proceedings that could result in the cancellation of its GST registration.
According to officials, the GST Department has issued a show-cause notice proposing the cancellation of the airline's GST registration, citing repeated delays and irregularities in the filing of mandatory returns over several months.
The tax demand follows a provisional assessment carried out under the provisions of the Central Goods and Services Tax (CGST) Act and State Goods and Services Tax (SGST) Act, 2017. Authorities initiated the assessment after the airline allegedly failed to submit returns within the prescribed deadlines.
Officials stated that the carrier had repeatedly filed returns beyond due dates, prompting the department to undertake compliance action. As part of the assessment, tax authorities raised demands 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 concerning the cancellation of GST registration was reportedly issued on May 25, 2026. Authorities said the airline has yet to complete the required compliance procedures and clear pending filings.
Officials indicated that failure to submit pending returns and fulfil statutory obligations could invite further action under GST regulations.
The latest development adds to the financial challenges facing the airline. In its financial results for the quarter ended September 30, 2025, SpiceJet reported a consolidated net loss of ?621 crore, compared to a loss of Rs 458 crore during the corresponding period of the previous year.
The airline also witnessed a decline in operational revenue, which fell 13 per cent to Rs 792 crore from ?915 crore recorded in the same quarter of the previous fiscal year, according to regulatory filings.
Reflecting investor concerns, SpiceJet shares ended Friday's trading session at Rs 12.75 on the BSE, registering a decline of 0.47 per cent from the previous close.
The airline has not yet publicly responded to the latest tax demand and the proposed cancellation proceedings.