Chalet Hotels Limited has informed stock exchanges about receiving a significant GST department order with financial implications totaling Rs 107.02 million. The company disclosed this development under Regulation 30 of the SEBI Listing Regulations on March 31, 2026.

GST Department Order Details

The Maharashtra State GST Department issued the order on March 30, 2026, under section 74 of the Goods and Services Tax Act 2017. The order was passed by the Deputy Commissioner of State Tax, Nariman Point Nodal Division-2, Mumbai.

Nature of Violations

The GST demand relates to issues identified for the financial year 2019-20, specifically:

• Mismatch in Input Tax Credit (ITC) claimed
• Excess ITC credit claims
• ITC reversal on account of ineligible/blocked ITC claimed

The order addresses discrepancies between the ITC claimed by the company and what the department considers eligible under GST regulations.

Company's Response and Impact

Chalet Hotels has indicated its intention to challenge the order through appropriate legal channels. The company stated that it believes the GST department's order is contestable and will consider taking suitable legal recourse.

The company emphasized that despite the GST order, its business operations continue normally without any disruption. Management has assessed that there is no significant financial impact on the company's operations at this stage.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided detailed information as required under the SEBI Master Circular for compliance with listing regulation provisions, ensuring transparency with stakeholders about this regulatory development.

Chalet Hotels Limited has completed the allotment of 10,000 equity shares under its CHL Employee Stock Option Plan 2022, following approval from the Compensation, Nomination and Remuneration Committee on March 18, 2026. The shares were issued to eligible employees at an exercise price of Rs.292 per share, with a premium of Rs.282 per share over the face value of Rs.10.

Share Capital Enhancement

The allotment has resulted in an increase in the company's paid-up equity share capital, with the newly issued shares carrying the same rights as existing equity shares.

ESOP 2022 Plan Details

The Employee Stock Option Plan 2022 encompasses a total of 12,17,831 employee stock options, with each option convertible into one equity share. The exercise price was determined based on the average closing share price over the last 30 trading days as of the plan's approval date of April 20, 2022.

Financial Impact and Share Performance

The exercise of these stock options generated Rs.29.20 lakh for the company. Following the allotment, the diluted earnings per share stands at Rs.22.78 on a standalone basis and Rs.22.02 on a consolidated basis.

The newly allotted equity shares have been assigned distinctive numbers from 218984128 to 218994127 and carry the ISIN INE427F01016. These shares rank pari-passu with existing equity shares and are identical in all respects to the company's current equity shares.

Regulatory Compliance

The allotment was conducted in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and the SEBI Share Based Employee Benefits and Sweat Equity Regulations, 2021. The company's shares are listed on both the National Stock Exchange of India Limited and BSE Limited.

The ESOP plan allows eligible employees to exercise their options within a maximum period of five years from the vesting date, subject to continued employment and performance criteria as specified by the Compensation, Nomination and Remuneration Committee.