The Goods and Services Tax (GST) department in Gurugram has initiated proceedings to cancel the GST registration of budget carrier SpiceJet for persistently failing to file mandatory tax returns.
Following repeated delays and irregularities in return filings, the department issued a show-cause notice to the airline under Section 62 of the CGST Act, 2017. The action follows a provisional assessment that identified a significant tax liability against the company.
Breakdown of tax demand
Tax authorities have determined a total outstanding liability of Rs 124.65 crore for the period November 2025 to March 2026:
November: Rs 44.44 crore
December: Rs 43.79 crore
January: Rs 12.19 crore
February: Rs 12.10 crore
March: Rs 12.12 crore
Regulatory action
The department issued the formal show-cause notice on May 25. Officials said the airline has not filed the pending returns needed to rectify the situation despite the legal notice.
GST officials warned that if SpiceJet does not promptly file the outstanding returns and comply with statutory obligations, the department will proceed with cancelling its registration and initiate further legal action.
