Lemon Tree Subsidiary Faces ₹6 Cr GST Demand
Lemon Tree Hotels' material subsidiary, Berggruen Hotels Private Limited, has received a GST demand notice from Bengaluru authorities for FY 2022-23. The notice, in Form GST DRC-01A, proposes a total demand of approximately ₹6.03 crore, comprising ₹2.94 crore in tax, ₹2.31 crore in interest, and ₹0.38 crore in penalty. The demands arise from alleged non-compliance issues including turnover mismatches, issues with Input Tax Credit (ITC) claims, and non-substantiation of exempt turnover and scrap sale income. The subsidiary is evaluating the grounds and intends to file a response within the prescribed timeline. The company states there is no material impact on its financial operations beyond the specified amounts.
Key Highlights
- Subsidiary Berggruen Hotels received GST demand notice.
- Total proposed demand stands at ₹6.03 crore (tax, interest, penalty).
- Demands relate to FY 2022-23 GST compliance issues.
- Subsidiary to contest the demand and file a response.
- No material financial impact expected beyond the demand amount.
Price Impact
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