Fortis Healthcare Limited has informed the Exchange about the receipt of GST order by Fortis Health Management Limited (Wholly owned subsidiary of Fortis Healthcare Limited)
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Fortis Healthcare's wholly owned subsidiary, Fortis Health Management Limited, received a GST order from the State Tax Officer (Intelligence Division) in Chengalpattu, Tamil Nadu. The authority had earlier issued a show cause notice for ₹570 lakhs (including ₹285 lakhs penalty) for FY 2023-24, and has now confirmed a total demand of ₹597.93 lakhs, which includes interest of ₹79.29 lakhs and penalty of ₹259.32 lakhs. The remaining amount from the original show cause notice has been dropped. The dispute relates to the denial of GST exemption claimed on healthcare services. The company has stated it believes the demand is not maintainable and is in the process of filing an appeal, with no expected material impact on its financials or operations.
This is a routine tax dispute at a subsidiary level. The ₹597.93 lakh demand is small relative to Fortis Healthcare's overall size, and the company is confident of overturning it on appeal, so the financial impact on shareholders is likely negligible.