Religare Stumbles on Rs 40 Crore Tax Bill

2 Jan 2024 , 02:10 PM

Religare Enterprises’ stock fell by around 1% in early trading on January 2 following the issuance of a GST demand of Rs 39.51 crore to a subsidiary by the Central Excise Commissionerate, Chandigarh, CGST. The stock was trading on the NSE at Rs 214.24 at 13:15 p.m.

The Principal Commissioner of Central Goods and Service Tax and Central Excise Commissionerate of Chandigarh issued an order to Religare Enterprises subsidiary Care Health Insurance (CHIL). The Central Goods and Services Tax Act is the basis for the order, which includes a tax demand of Rs 35.92 crore. It was further enhanced by applicable interest and a fine of Rs 3.59 crore.

CHIL has a financial burden as a result of this event, given the combined amount of the tax demand, penalty, and interest.

The parent firm, Religare Enterprises, may have to deal with or manage the effects of this order on the financial situation of its subsidiary. These regulatory issues can have an effect on a company’s financial health, therefore the parties involved must give them significant thought and make calculated decisions.

Additionally, the business disclosed in its January 1 exchange filing with the BSE that, in accordance with Tax Consultants’ recommendations, CHIL would appeal the aforementioned order to the relevant tribunal within the allotted time frames.

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