SpiceJet Faces ₹124.65 Crore GST Demand Over Return Filing Defaults

The Goods and Services Tax (GST) department has issued a tax demand of ₹124.65 crore to budget carrier SpiceJet over its failure to file GST returns for several months, officials said on Friday. The department has also served a show-cause notice seeking cancellation of the airline's GST registration , citing repeated non-compliance with statutory filing requirements.

According to GST authorities, the airline consistently delayed filing returns, prompting a provisional assessment under Section 62 of the CGST and SGST Act, 2017 , which allows tax authorities to estimate tax liabilities when returns are not submitted.

The demand includes ₹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 , taking the total assessed liability to ₹124.65 crore.

Officials said a notice regarding cancellation of the airline's GST registration was issued on May 25, 2026 , but the company has yet to file its pending returns. Authorities warned that further action could follow if the airline fails to comply with its obligations under GST laws.

Cancellation of GST registration could significantly affect business operations, including the issuance of tax invoices and the ability to claim input tax credits.

The latest tax action adds to the challenges faced by SpiceJet, which has grappled with financial difficulties, legal disputes, and operational pressures in recent years. While the airline has undertaken measures to improve liquidity and restore stability, regulatory scrutiny remains intense.

Despite repeated attempts, SpiceJet officials could not be reached for comment.

The development highlights how financial stress continues to shadow parts of India's aviation sector , where rising costs, debt burdens, and regulatory compliance challenges continue to test the resilience of several carriers.