A material subsidiary of Lemon Tree Hotels, Berggruen Hotels Private Limited (“BHPL”), has received a revised demand from tax authorities amounting to ₹42.92 lakh. The demand, related to the period 2018-19, includes tax, interest, and penalty. Lemon Tree Hotels is currently evaluating all options, including filing an appeal against the order, deeming the demand as not maintainable based on their assessment.
Revised Tax Demand
Berggruen Hotels Private Limited (“BHPL”), a material subsidiary of Lemon Tree Hotels, has received a revised demand from the Office of Commercial Tax Officer (Audit), Koramangala, Bangalore. The total demand amounts to ₹42,92,353.
Breakdown of Demand
The ₹42.92 lakh demand is comprised of the following components:
- Tax: ₹18,07,307
- Interest: ₹23,04,316
- Penalty: ₹1,80,730
Background and Assessment
The demand pertains to the period 2018-19. Lemon Tree Hotels believes the demand is not maintainable and is evaluating all options, including filing an appeal. The order was received on November 29, 2025. The demand was issued under Section 73 of the CGST Act / KGST Act, 2017 read with Section 20 of IGST Act, 2017.
Source: BSE