On August 29, 2024, Chalet Hotels Limited informed the stock exchanges about a significant development concerning its GST obligations. The company has received an order from the GST Department of Telangana State dated August 28, 2024. This order, issued under section 73 of the Goods and Services Tax Act, 2017, involves a demand aggregating to ₹3.89 million, which includes a penalty of ₹0.35 million. The demand pertains to the Financial Year 2019-20 and is related to the excess GST payment adjustment from FY 2017-18.

Details of the GST Demand:

The order was issued by the Assistant Commissioner of Central Tax, Gachibowli Division. It concerns an adjustment made by the company where excess GST paid in FY 2017-18 was adjusted against the tax payable for FY 2019-20. The department has found this adjustment to be untenable, leading to the current demand.

Implications and Company's Response:

Nature of the Order: The demand arises from what the department considers a short payment of GST. This adjustment of excess payment was challenged by the department, leading to the substantial demand.

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Company’s Stance: Chalet Hotels Limited believes that the order is contestable and is considering appropriate legal recourse against the demand. The company has stated that the business operations are continuing as usual and are not affected by this issue.

Impact on Financials and Operations:

Despite the substantial amount involved, the company has assessed that there will be no significant financial impact on its operations. The business activities will proceed as planned, and the company remains focused on addressing the GST demand through legal channels.

Conclusion:

This development highlights the ongoing regulatory challenges faced by companies in the Indian corporate sector. Chalet Hotels Limited’s proactive approach in contesting the demand reflects its commitment to managing regulatory issues effectively while maintaining operational stability. For further updates and information, stakeholders are advised to follow the company's official communications and website.

This update is provided as part of Chalet Hotels Limited's commitment to transparency and adherence to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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