SpiceJet clears GST dues days after raising Rs.3K crore through QIP

SpiceJet, a low-cost airline, paid all of its Goods and Services Tax (GST) dues on Friday, a day after settling all staff salary arrears. This comes after the airline had raised Rs.3,000 crore through a QIP.

The QIP attracted a wide spectrum of institutional investors and funds, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Limited.

“We are proud to have cleared all GST dues, an important step towards reinforcing our devotion to financial discipline and regulatory compliance,” stated SpiceJet’s Chairman and Managing Director, Ajay Singh.

“These developments reflect our commitment to giving exceptional service to our passengers while placing ourselves strategically for the future.”

The airline previously disclosed that it failed to pay tax authorities around Rs.220 crore in tax deducted at source (TDS) from employee paychecks between April 2020 and August 2023.

On September 24, SpiceJet reported that it had reached an amicable resolution with Engine Lease Finance Corporation (ELFC). ELFC had earlier claimed $16.7 million, and a settlement was made for an undisclosed amount that is less than the original claim.

Meanwhile, SpiceJet’s market share is falling, according to the most recent DGCA data. The airline’s market share was 5.6% in January, but it has steadily declined since then, down to 2.3% in August. In 2021, the airline held a sizable market share of 10.5%.

SpiceJet shares were trading up 0.66% as of 10:30 a.m., while the benchmark indices were up about 0.12%.