Lemon Tree Hotels Limited has announced that its subsidiary, Hyacinth Hotels Private Limited, has received a tax order from the Central Goods & Service Tax authorities. The order involves a demand for tax, interest, and penalties totaling Rs. 46,39,783 relating to the import of services under the reverse charge mechanism for the period spanning 2019-20 to 2023-24. The company has stated there is no material impact on its overall financial operations.
Tax Demand Details
On April 13, 2026, Hyacinth Hotels Private Limited, a subsidiary of Lemon Tree Hotels, received an official order from the Assistant Commissioner of Central Goods & Service Tax, Delhi South Commissionerate. The demand encompasses tax liability, interest, and a penalty amounting to Rs. 46,39,783.
Context of the Order
The demand stems from the tax treatment of imported services under the reverse charge mechanism. The order covers the financial years from 2019-20 through 2023-24. While the specific sum is specified, the parent company maintains that the order does not pose a material impact on its broader financial or operational activities.
Next Steps
Hyacinth Hotels is currently in the process of reviewing the order and evaluating all available legal remedies. The management intends to pursue appropriate legal action in due course to address the findings of the tax authorities.
Source: BSE
