Chalet Hotels Ltd has received a GST Department order demanding Rs.33.07 million in tax, Rs.40.88 million in interest, and Rs.33.07 million in penalties. The company plans to contest the order, stating operations remain unaffected.
Chalet Hotels Limited has disclosed to the stock exchanges that the Maharashtra GST Department issued an order under Section 74 of the GST Act, 2017, citing mismatches in Input Tax Credit (ITC) for FY 2019-20.
Regulatory Order And Tax Demand
The Deputy Commissioner of State Tax, Mumbai, passed the order on March 30, 2026. The demand includes tax, interest, and penalties totaling Rs.107 million. The alleged violation pertains to excess ITC claims and ineligible/block ITC reversal.
Company Response
Chalet Hotels has clarified that the order is contestable and the company will explore legal remedies. Importantly, management emphasized that business operations continue as usual, with no significant financial impact.
Key Highlights
Tax demand: Rs.33.07 million
Interest: Rs.40.88 million
Penalty: Rs.33.07 million
Order date: March 30, 2026
Violation: ITC mismatch and block ITC reversal
Operations remain unaffected
Sources: Chalet Hotels Ltd regulatory filing to NSE and BSE