Thursday, August 12, 2021

Tax department issues show-cause notice to SpiceJet for non-payment of GST dues

Mumbai: The tax department has served a notice to SpiceJet for non-payment of GST dues asking the airline to pay ₹80.68 crore with interest as dues between February 2020 and June 2021. SpiceJet has filed a writ petition in the Chandigarh High Court against the notice.

According to sources, SpiceJet had requested to make the payments in installments. It had also asked the tax department if the dues could be adjusted against possible refunds owed by the GST department to the airline.

However, these requests were declined. Instead, the GST department threatened recovery proceedings under Section 79 of the CGST and HGST Act, 2017. It had also asked the debt-strapped carrier to submit details of all the bank accounts along with movable and immovable assets of the airline.

In its submission to the court, SpiceJet said it admits to the tax liabilities; however, it does not have funds to discharge its GST liabilities in view of the adverse impact of Covid-19 on the aviation sector.

While the tax department has claimed that SpiceJet has unpaid dues to the tune of ₹80.68 crore since February 2020, the airline has acknowledged dues of only over ₹63 crore.

The tax department has contended that “it is apparent that there was a deliberate attempt on behalf of the petitioner’s (SpiceJet) part in under-reporting the details of the supplies and the consequent tax liability arising therefrom.”

12/08/21 Forum Gandhi/Business Line

To Read the News in full at Source, Click the Headline


Post a Comment