Lemon Tree Subsidiary Faces Rs 5.6 Crore GST Demand Over Compliance Gaps

An announcement from Lemon Tree Hotels Ltd. ( (IN:LEMONTREE) ) is now available. Lemon Tree Hotels Ltd. disclosed that its material subsidiary, Berggruen Hotels Private Limited, has received a GST intimation in Form GST DRC-01A from the Deputy Commissioner of Commercial Taxes (Audit) in Bengaluru for FY 2022-23. The notice proposes tax, interest and penalty liabilities totaling roughly Rs. 5.6 crore under Section 73(5) of the KGST/CGST Act, 2017. The proposed demand stems from alleged GST compliance gaps, including turnover mismatches between GSTR-3B and GSTR-1, non-submission of purchase registers and invoices to support input tax credit, and missing ageing details for trade payables that could trigger ITC reversals. Further issues relate to unsubstantiated exempt turnover and scrap sales, and while the company has only reported the intimation at this stage, the case underscores heightened tax scrutiny on hotel operators and may lead to financial and operational implications depending on how the dispute is resolved. More about Lemon Tree Hotels Ltd. Lemon Tree Hotels Ltd. operates in India's hospitality industry, running a chain of business and leisure hotels across key urban and travel hubs. The company focuses on mid-market and upscale accommodation through its own brands and material subsidiaries, targeting corporate travelers and tourists with a portfolio of managed and owned properties. Its subsidiary Berggruen Hotels Private Limited forms an important part of this network, contributing to the group's presence in major cities such as Bengaluru and supporting Lemon Tree's broader strategy in the competitive organized hotel segment. Average Trading Volume: 400,682 Technical Sentiment Signal: Sell Current Market Cap: 83.19B INR See more data about LEMONTREE stock on TipRanks' Stock Analysis page. This story was written using TipRanks's AI tools and reviewed by a TipRanks editor. Disclaimer & DisclosureReport an Issue