EIH Limited Receives CARE AA+ Stable Issuer Rating from CARE Ratings Limited

EIH Limited announced that CARE Ratings Limited has assigned the company an issuer rating of CARE AA+ with a stable outlook on December 26, 2025. The rating assignment was communicated to stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Rating Details

The rating committee of CARE Ratings Limited assigned the following rating to EIH Limited:

Rating Parameter:	Details
Type of Rating:	Issuer Rating
Rating:	CARE AA+
Outlook:	Stable
Rating Action:	Assigned

Rating Characteristics and Validity

The issuer rating represents CARE Ratings' opinion on the general creditworthiness of EIH Limited and is not specific to any particular debt instrument. The rating is valid for one year from the initial communication date of December 24, 2025.

CARE Ratings Limited has indicated that the rating is not a recommendation to buy or sell any securities of the issuer. The rating agency emphasized that users should refer to their website for the latest updates on outstanding ratings.

Surveillance and Review Framework

CARE Ratings Limited reserves comprehensive rights regarding the assigned rating:

Right to undertake surveillance and review of the rating periodically
Minimum requirement of at least one review or surveillance annually
Authority to revise, reaffirm, or withdraw the rating based on periodic reviews
Right to revise the outlook based on events or information warranting such action

Regulatory Compliance

The rating assignment was formally communicated by EIH Limited's Company Secretary, Lalit Kumar Sharma, through a regulatory filing. The company provided a copy of the rating letter received from CARE Ratings Limited as part of the disclosure.

CARE Ratings Limited maintains the right to publicize and disseminate rating actions without reference to the rated entity. In cases where the entity fails to provide required information for continuous monitoring, the rating agency will conduct reviews based on the best available information, with the credit rating symbol accompanied by "ISSUER NOT COOPERATING" notation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.54%	-0.48%	-2.70%	+0.19%	-11.65%	+305.67%

EIH Hotels has been slapped with a significant GST penalty, highlighting compliance challenges in the hospitality sector's tax obligations. The company's Maidens Hotel, operated by EIH Limited, has been penalized ₹57.98 lakh by Delhi GST authorities for non-payment under the Reverse Charge Mechanism (RCM) on foreign travel agent commissions.

Penalty Details

The penalty was imposed by the Deputy Commissioner, Delhi, for alleged non-compliance with GST obligations over a period spanning from FY2019 to FY2023.

Parameter	Details
Penalty Amount	₹57.98 lakh
Legal Provision	Section 74 of Central GST Act, 2017
Affected Property	Maidens Hotel
Period Covered	FY2019 to FY2023

Nature of Non-Compliance

The penalty relates specifically to non-payment of GST under the Reverse Charge Mechanism on import of services. The issue centers around commissions paid to foreign travel agents, a common practice in the hospitality industry where hotels work with international booking platforms and travel agencies to attract overseas customers.

The Reverse Charge Mechanism requires the recipient of services to pay GST instead of the supplier, particularly relevant when dealing with foreign service providers who may not be registered under Indian GST laws.

Potential Company Response

While EIH Hotels has not yet disclosed its response strategy, companies in such situations typically consider:

Filing an appeal against the order within the prescribed statutory time limit
Reviewing and strengthening their compliance processes to prevent future issues

Impact and Implications

The financial impact appears to be limited to the penalty amount imposed. However, this development underscores the ongoing scrutiny of GST compliance in the hospitality sector, particularly regarding international transactions and service imports that fall under the Reverse Charge Mechanism.

This incident serves as a reminder for companies in the hospitality industry to carefully manage their tax obligations, especially when dealing with international partners and service providers.