Religare Enterprises witnessed a nearly 1 percent decline in early trade on January 2, following a substantial Goods and Services Tax (GST) demand of Rs 39.51 crore issued to its subsidiary by CGST, Central Excise Commissionerate, Chandigarh.
The subsidiary in question, Care Health Insurance (CHIL), found itself under the scrutiny of the Principal Commissioner of Central Goods and Service Tax and Central Excise Commissionerate of Chandigarh. The order, executed under the Central Goods and Services Tax Act, disclosed a tax demand of Rs 35.92 crore, accompanied by a penalty of Rs 3.59 crore and relevant interest.
This development poses a financial hurdle for CHIL, as the combined sum of tax demand, penalty, and interest represents a substantial financial obligation.
As the parent company, Religare Enterprises may find itself navigating the repercussions of this order on its subsidiary’s financial stability. Regulatory interventions of this nature have the potential to impact the overall financial well-being of companies, requiring prudent consideration and strategic decisions from the involved entities.
As of 10:35 am, shares exhibited a 1.20% decline, trading at ₹214.95.
