Shares of Chalet Hotels Ltd. declined on Friday following search operations conducted by GST authorities at the company’s office and hotel properties.
The company said that the GST authorities conducted search operations on Thursday pursuant to Section 67 of the Goods and Services Tax Act 2017 at the office and some of its hotel units.
Chalet Hotels Ltd. (Chalet) stated that it was fully cooperating with GST officials and providing information or clarifications sought by them.
Search operations under Section 67 of the GST Act are conducted by an officer, not below the rank of Joint Commissioner, when the authorities believe that a taxable entity has hidden any transaction relating to the supply of goods or services or has claimed input tax credit in excess of the entitlement under the Act.
Chalet Hotels owns and operates high-end hotels and resorts in India. Its portfolio comprises eight operating hotels, including a hotel with a co-located serviced residence, which are situated across the Mumbai Metropolitan Region, Hyderabad, Bengaluru, Lonavala, and Pune.
Chalet earlier this month announced that its board approved raising up to Rs 500 crore to refinance the company’s high-cost debt.
Chalet in May this year signed a franchise agreement with Indian Hotels to open and operate the Taj brand in the Delhi airport area, which is T3.
ICICI Securities recently initiated coverage on Chalet Hotels with a ‘Buy’ rating and a target price of Rs 603 per share.
Shares of Chalet Hotels are trading 1.22 percent lower at Rs 450.95.
