Yes its cyclic. I am not using any closed loop. Just connected the Z-source to the inverter and operating at 10kHz.. I have attached an image for your reference. Thanks for your time :)

Dear Muhammad Musthafa:   

Depend from came these spikes, e.g.:

If belong to abrupt starting from a motor, this should ¶to diminish if it is well within your capabilities connecting a smooth starting But:                        

If belong to a short circuit or for increase abruptly load, should install an special equipment how a SVC, STATCOM, etc. that are active filters with rapid answer.

Thanks Ronak. I tried playing with amplitude MI of the reference wave and I got the output as shown in the attached..

Dear Muhammad:

You should test if connect a inductance for smooth the spikes, but should be connected with the value adequate.  

With regards:

Héctor R.

Dar Hector,

Sorry to trouble again. Do you mean L filter?

Dear Muhammad:

What type of filter do you refer?, in the electronica of power?, because here I only know two big groups:

Passive filters and

active filters

And these can be connected in series or parallel.

If is in the group of converter (e.g. DC to AC) then exist H, Pi, etc. types, understand?  

You can use LC filter or LCL filter to remove the spikes.