Lemon Tree Hotels Limited has received a Goods and Services Tax (GST) demand order from the Central GST Authority, requiring the hospitality company to pay Rs. 39.97 lakh in tax liability, interest, and penalty. The company disclosed this development under Regulation 30 of SEBI listing regulations on April 16, 2026.

GST Demand Details

The demand order was issued by the Office of the Assistant Commissioner of Central Goods & Service Tax, Delhi South Commissionerate, covering financial years from 2019-20 to 2023-24. The order addresses tax liability related to import of services under reverse charge mechanism provisions.

Legal Framework and Violations

The GST demand has been raised under Sections 74(9) and 50 of the CGST Act, 2017. The order specifically targets the recovery of tax liability on import of services under reverse charge mechanism, along with applicable interest on the tax liability and penalty components.

The company received the order on April 16, 2026, and the demand encompasses multiple financial years, indicating a comprehensive review by the tax authorities of the company's GST compliance related to imported services.

Financial Impact and Company Response

Lemon Tree Hotels has stated that there is no material impact on its financial operations except to the extent of the amount specified in the demand order. The company emphasized that it is currently evaluating available legal remedies and will take appropriate legal action in due course.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company secretary and compliance officer, Pawan Kumar Kumawat, signed the regulatory filing.

This development represents a routine regulatory challenge that hospitality companies may face regarding GST compliance, particularly concerning the complex provisions of reverse charge mechanism on imported services. The company's measured response indicates confidence in addressing the matter through appropriate legal channels.

Lemon Tree Hotels Limited has submitted its quarterly compliance certificate to the National Stock Exchange of India and BSE Limited for the quarter ended March 31, 2026. The filing, made on April 09, 2026, fulfills the company's regulatory obligations under SEBI Regulation 74(5) of the Depositories and Participants Regulations, 2018.

Regulatory Compliance Certificate

The certificate was issued by the company's registrar and transfer agent, KFin Technologies Limited, dated April 06, 2026. This document confirms the company's compliance with dematerialization procedures during the period from January 01, 2026 to March 31, 2026.

Key Compliance Activities

During the quarter, KFin Technologies Limited confirmed that all dematerialization requests were processed according to regulatory requirements. The registrar ensured that:

• All demat requests were confirmed (approved or rejected) within the stipulated 15-day timeframe
• Depositories were notified that securities in the certificates were listed on appropriate stock exchanges
• Physical security certificates were properly mutilated and cancelled after verification
• Depositary names were substituted in the register of members for approved demat requests

Corporate Information

The filing was signed by Pawan Kumar Kumawat, Company Secretary and Compliance Officer (Membership No: A25377), on behalf of Lemon Tree Hotels Limited. The company operates from its registered office in Gurugram, Haryana, and maintains its corporate office in New Delhi's Aerocity Hospitality District.

Registrar Details

KFin Technologies Limited, serving as the registrar and transfer agent, operates from its registered office in Mumbai and maintains operations centers in Hyderabad. The company holds CIN L72400MH2017PLC444072 and continues to provide registrar services for various listed companies including Lemon Tree Hotels Limited.