Shares of Religare Enterprises were trading 1% lower on 2 January after a subsidiary of the company was issued a GST demand of Rs 39.51 crore from CGST, Central Excise Commissionerate, Chandigarh.

In its filing, the company said that its subsidiary Care Health Insurance had received an order from the Principal Commissioner of Central Goods and Service Tax and Central Excise Commissionerate of Chandigarh under the Central Goods and Services Tax Act for a tax demand of Rs 35.92 crore along with a penalty of Rs 3.59 crore.

As a parent company of Care Health Insurance, the company may need to address or navigate the implication of this order on its subsidiary’s financial standing.

The company further informed that based on the advice of Tax Consultants, Care Health Insurance will file for an appeal against the said order before an appropriate forum within the stipulated timelines.

In six months, the shares of the company have given a return of over 23% against the benchmark Nifty50 index, which has given a return of 12.52% over the same duration.

At 1:19 pm, the shares of Religare Enterprises were trading 1.38% lower at Rs 214.55 on NSE.