SpiceJet receives tax notice of ₹125 crore:Company’s GST registration may be cancelled

The Goods and Services Tax (GST) Department has issued a tax demand notice of approximately ₹125 crore to budget airline SpiceJet. According to officials, the airline, which is struggling with financial difficulties, has been accused of not filing GST returns for several months. Along with this, the department has also initiated proceedings to cancel SpiceJet’s GST registration. The GST Department has sent a show-cause notice to SpiceJet for repeated delays in filing returns and non-compliance with regulations. This notice also includes a proposal to cancel the airline’s GST registration. Officials say that after failing to file returns within the stipulated time period, a provisional assessment was conducted under Section 62 of the CGST and SGST Act, 2017, following which this tax demand has been raised. How much tax is outstanding for which month? According to GST authorities, SpiceJet has committed ‘continuous irregularities’ in filing returns and has repeatedly submitted returns late. According to the assessment, the department has issued demand notices totaling ₹124.65 crore for different months, the details of which are as follows Notice was issued on May 25, warning of action Officials stated that a show-cause notice regarding the cancellation of the airline’s GST registration was issued on May 25, 2026. Despite this, the company has still not fulfilled the pending compliance requirements. An official has said that if SpiceJet does not file its pending returns soon and does not fulfill its statutory responsibilities under GST law, then strict action will be taken as per the rules. What is Section 62? Under this, if any registered taxpayer does not file their return on time, then the authorities have the right to assess the tax themselves based on available data and issue a demand notice. Impact of Registration Cancellation If a company’s GST registration is cancelled, then it cannot legally conduct commercial activities or tax collection work smoothly, which can completely affect the business.