Hyacinth Hotels Subsidiary Receives Tax Demand of Rs. 46,39,783/- from CGST Authority
M/s Hyacinth Hotels Private Limited, a subsidiary of Lemon Tree Hotels Limited, has received a tax demand order from the Office of the Assistant Commissioner of Central Goods & Service Tax, Delhi South Commissionerate. The order, dated April 13, 2026, raises a demand for tax, interest, and penalty under the Central Goods and Service Tax (CGST) Act, 2017.The demand pertains to the recovery of tax liability related to the import of services under the reverse charge mechanism, specifically invoking Section 74(9) of the CGST Act, 2017. The order also mandates applicable interest under Section 50 and a penalty, totaling Rs. 46,39,783/-.
The authorities passed the demand for the financial years spanning 2019-20 to 2023-24.
The financial details concerning the tax demand are summarized below:
| Financial Element | Value | Applicable Section | Tax Period |
|---|---|---|---|
| Tax Liability on Services | Rs. 46,39,783/- | Section 74(9) | 2019-20 to 2023-24 |
| Penalty Amount | Rs. 46,39,783/- | N/A | 2019-20 to 2023-24 |
| Applicable Interest | Specified by Authority | Section 50 | 2019-20 to 2023-24 |
Lemon Tree Hotels Limited stated that the receipt of this order represents no material impact on the financial or operational activities of the listed entity, save for the specified amount. Hyacinth Hotels Private Limited has indicated that it is currently evaluating all available legal remedies and intends to take appropriate legal action in due course.
LEMONTREE Stock Price Movement
On Monday, Lemon Tree Hotels Limited shares slipped by 1.69% to settle at ₹112.30, marking a noticeable decline from the previous close. The stock traded on a volume of 2.95 million shares throughout the day.Source:
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