Struggling Airline Faces GST Action for Repeated Non-Filing and Delayed Returns
GURUGRAM (Economy India): The Goods and Services Tax (GST) department has issued a tax demand of ₹124.65 crore to financially stressed airline SpiceJet over alleged non-filing and delayed filing of GST returns for several months, officials said on Friday.
The department has also issued a show-cause notice proposing cancellation of the airline’s GST registration due to repeated irregularities in return filing compliance.
GST Department Initiates Action
According to officials, SpiceJet consistently failed to file GST returns within the prescribed timelines and repeatedly submitted delayed returns.
As a result, the GST authorities initiated provisional assessment proceedings under Section 62 of the Central Goods and Services Tax (CGST) Act and State GST (SGST) Act, 2017.
Based on the assessment, the department calculated a total tax liability demand of ₹124.65 crore covering multiple tax periods.
Show-Cause Notice for GST Registration Cancellation
The GST department has reportedly asked SpiceJet to explain why its GST registration should not be cancelled for continued non-compliance with statutory filing requirements.
Under GST regulations, businesses are required to file periodic tax returns and maintain timely compliance to avoid penalties, suspension or cancellation of registration.
Officials stated that the action was initiated after repeated defaults despite earlier notices and compliance reminders.
Fresh Challenge for Financially Stressed Airline
The development adds to the mounting financial and operational challenges faced by SpiceJet in recent years.
The airline has been dealing with liquidity constraints, legal disputes, operational disruptions and regulatory scrutiny while attempting to stabilize its business operations.
Industry experts believe the latest GST demand could further increase financial pressure on the airline amid ongoing efforts to improve cash flow and operational efficiency.
Aviation Sector Under Regulatory Scrutiny
India’s aviation sector has witnessed heightened regulatory and financial oversight in recent years due to rising operational costs, debt burdens and compliance-related concerns.
Airlines are increasingly being monitored for tax compliance, financial disclosures and operational standards as authorities seek to strengthen governance within the sector.
Despite challenges, SpiceJet continues to operate domestic and international flights while pursuing fundraising and restructuring initiatives.
Company Yet to Respond Officially
As of now, SpiceJet has not issued any detailed public response regarding the GST demand and the show-cause notice.
Market observers are expected to closely monitor the airline’s next steps, including any legal or administrative response to the tax proceedings.
(Economy India)
