Lemon Tree Hotels Ltd Receives Tax Order for Rs. 39,97,924/- from CGST Authority
Lemon Tree Hotels Ltd recently received an order from the Office of the Assistant Commissioner of Central Goods & Service Tax, Delhi South Commissionerate. The order, received on April 16, 2026, raises a demand for tax, interest, and penalty under Section 50 and Section 74 of the CGST Act, 2017.The demand relates to the recovery of tax liability concerning the import of services under the reverse charge mechanism. This order covers the financial years spanning 2019-20 to 2023-24.
According to the detailed information, the tax demand comprises the following key components:
| Detail | Description | Amount/Period |
|---|---|---|
| Authority Issuing Order | Office of the Central Goods & Service Tax, Delhi South Commissionerate | N/A |
| Date of Order Receipt | April 16, 2026 | N/A |
| Financial Period Covered | Financial Year 2019-20 to 2023-24 | N/A |
| Core Tax Liability | Tax on import of services under reverse charge mechanism (Section 74(9) of CGST Act, 2017) | Rs. 39,97,924/- |
| Penalty and Interest | Applicable Interest (Section 50) and Penalty | Rs. 39,97,924/- |
The company noted that the order raises a total demand encompassing Tax, Interest, and Penalty under Section 74(9) and Section 50 of the CGST Act, 2017.
Regarding the operational and financial implications, Lemon Tree Hotels Ltd stated that the demand does not represent a material impact on financial operations, apart from the specified amount. The company confirmed that it is currently evaluating available legal remedies and plans to take appropriate legal action in due course.
LEMONTREE Stock Price Movement
Lemon Tree Hotels Limited shares today slipped by 0.25% to settle at ₹114.18, dropping ₹0.29 in trading. The equity closed with a noticeable total traded volume of 4.27 million shares.Source:
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