Fortis Healthcare Limited has informed regarding GST Order received by Fortis Health Management Limited (Wholly owned subsidiary of Fortis Healthcare Limited)
FORTIS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Fortis Healthcare's wholly owned subsidiary, Fortis Health Management Limited, received a GST order from the State Tax Officer (Group IX, Chengalpattu, Tamil Nadu). The tax authority originally issued a show cause notice for INR 570 lakhs (including penalty of INR 285 lakhs) for FY 2023-24, relating to denial of GST exemption on healthcare services. After reviewing the subsidiary's response, the authority confirmed a demand of INR 597.93 lakhs, which includes interest of INR 79.29 lakhs and penalty of INR 259.32 lakhs, while dropping the balance amount from the original notice. The company believes the demand is not maintainable and is in the process of filing an appeal. It has stated that it does not envisage any material impact on its financials, operations, or other activities.
The demand size is relatively small (under INR 6 crore) compared to Fortis Healthcare's overall scale, and since the company is appealing and expects no material financial impact, this is likely a minor, stock-neutral event. Shareholders should monitor the appeal outcome for any escalation.