Leela Palaces Hotels & Resorts announced that its material subsidiary, Tulsi Palace Resort Private Limited (TPRPL), received an Order from the Central Goods and Services Tax Division in Jaipur East on March 30, 2026. The order confirms a tax demand of INR 39,07,974/- plus interest and penalty, alleging wrongful reduction of output tax liability. The company stated there is no material impact on its financial or operational activities, and it is evaluating legal remedies, including filing an appeal.
Disclosure Regarding Subsidiary Action
Leela Palaces Hotels & Resorts Limited (the Company) has issued a mandatory disclosure concerning its material subsidiary, Tulsi Palace Resort Private Limited (TPRPL). The disclosure pertains to an Order received by TPRPL from a tax authority based in Jaipur East.
Details of the Tax Order
The Order was issued by the Office of the Assistant Commissioner, Central Goods and Services Tax Division, Jaipur East, following a review under the CGST Act, 2017. The specific details are as follows:
- Date of Receipt: March 30, 2026.
- Action Taken: An Order was passed confirming a demand of INR 39,07,974/-, which includes associated interest and penalty charges.
- Allegation: The core issue cited is the alleging wrongful reduction of output tax liability resulting from incorrect reporting of credit notes by the subsidiary.
Impact Assessment and Next Steps
The Company has rigorously assessed the potential fallout from this regulatory action. The official filing confirms that there is no material impact on the financial, operational, or other activities of the Company. Furthermore, TPRPL is actively engaged in evaluating all available legal remedies under applicable laws. This includes the possibility of filing an appeal against the order received.
This information has been duly submitted to the stock exchanges for public record and is also made available on the Company’s investor relations website.
Source: BSE
