Chalet Hotels Limited has been served an order by the Maharashtra State GST Department dated March 30, 2026. The order includes a combined Tax Demand of Rs. 33.07 million, interest of Rs. 40.88 million, and a penalty of Rs. 33.07 million related to mismatches in Input Tax Credit (ITC) claimed for FY 2019-20. The company asserts the order is contestable and confirms that current business operations remain unimpacted.
GST Department Assessment Issued
Chalet Hotels Limited announced the receipt of an order from the GST Department—Maharashtra State on March 30, 2026. This order stems from an assessment conducted under section 74 of the Goods and Services Tax Act, 2017, concerning the fiscal year 2019-20.
Financial Implications of the Demand
The order comprises several components related to alleged mismatch/excess of Input Tax Credit (ITC) claimed and block ITC utilization. The quantified liabilities are as follows:
- Tax Demand: Rs. 33.07 million
- Interest Payable: Rs. 40.88 million
- Penalty Imposed: Rs. 33.07 million
The total quantifiable amount related to the order is substantial, focusing specifically on the mismatch in Input Tax Credit claimed and ITC reversal on account of ineligible/block ITC claimed.
Company Response and Operational Status
Chalet Hotels Limited has indicated that it believes the order is contestable and intends to pursue appropriate legal recourse to challenge the findings. Importantly, the company stated that there is no significant financial impact and that the business operations continue as usual and are not impacted by this regulatory action.
Source: BSE
