New Delhi— The Goods and Services Tax (GST) department in Gurugram has initiated proceedings to cancel the GST registration of budget airline SpiceJet over persistent failure to file mandatory tax returns.
According to officials, the department issued a show-cause notice to the airline under Section 62 of the Central Goods and Services Tax (CGST) Act, 2017, after repeated delays and irregularities in return filings.
The action follows a provisional assessment carried out by tax authorities, which identified a substantial outstanding tax liability against the airline for the period between November 2025 and March 2026.
Authorities have assessed SpiceJet’s total pending liability at Rs 124.65 crore during the five-month period.
The month-wise breakdown includes 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.
The formal show-cause notice was issued on May 25. GST officials said the airline has not filed the pending returns required to regularise its compliance status despite receiving the notice.
Officials warned that if SpiceJet fails to promptly submit the outstanding returns and fulfil statutory obligations, the department may proceed with cancellation of its GST registration and initiate further legal proceedings.
The latest action adds to the financial and regulatory challenges facing the low-cost carrier, which has been dealing with operational and fiscal pressures in recent years.
