Chalet Hotels Limited has received a significant penalty notice from the Maharashtra GST Department, with a total demand of ₹160.02 crore related to tax compliance issues from FY 2018-19. The company disclosed this development through a regulatory filing on January 1, 2026, pursuant to SEBI listing regulations.

GST Penalty Details

The Maharashtra GST Department issued orders on December 31, 2025, under section 74 of the Goods and Services Tax Act 2017. The penalty breakdown reveals the comprehensive nature of the demand:

Nature of Violations

The GST department's action stems from multiple compliance issues identified during their assessment. The Deputy Commissioner of State Tax, Nariman Point Nodal Division-2, Mumbai, issued the order citing several specific violations:

• Mismatch in Input Tax Credit claimed by the company
• GST liability on uniforms and shoes supplied to employees
• ITC reversal on ineligible and blocked credits related to construction activities
• Excess ITC credit claims beyond permissible limits

These violations collectively pertain to the company's GST filings and claims for the financial year 2018-19, indicating a retrospective assessment by the tax authorities.

Company's Response and Legal Strategy

Chalet Hotels has indicated its intention to challenge the GST department's orders through appropriate legal channels. The company believes the orders are contestable and plans to pursue legal recourse against the imposed penalty and interest demands.

The hospitality company has assured stakeholders that the penalty notice will not impact its day-to-day operations. According to the regulatory filing, there is no significant financial impact anticipated, and business operations continue as usual without disruption.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided detailed information as required under the SEBI Master Circular dated November 11, 2024, ensuring transparency with investors and regulatory authorities.

The company secretary and compliance officer, Christabelle Baptista, signed the regulatory filing, confirming the accuracy of the disclosed information and the company's commitment to maintaining transparency with stakeholders regarding material developments.

Chalet Hotels Limited executed a significant block trade on the National Stock Exchange (NSE), marking notable institutional activity in the hospitality sector. The transaction involved a substantial volume of shares at a predetermined price point.

Transaction Details

The block trade encompassed key parameters that highlight the scale of the transaction:

Block Trade Significance

Block trades represent large-volume transactions typically executed by institutional investors, mutual funds, or other significant market participants. These transactions are conducted outside the regular order book to prevent substantial price movements that could occur with such large volumes in normal trading.

The execution at ₹868.50 per share indicates the agreed-upon price between the buyer and seller for this substantial stake transfer. Such transactions often reflect strategic investment decisions or portfolio rebalancing by institutional investors.

Market Impact

The ₹23.83 crore transaction value demonstrates the liquidity available in Chalet Hotels' stock and the interest from large investors in the hospitality sector. Block trades of this magnitude typically indicate confidence in the company's fundamentals and growth prospects among institutional participants.