Fortis Healthcare Subsidiary Receives GST Order; Company Plans Appeal
Fortis Healthcare's subsidiary received a GST order for ₹597.93 lakhs, including ₹259.32 lakhs penalty. The company believes the demand is not maintainable and is filing an appeal, expecting no significant financial impact.
While the company does not expect a material impact, the order involves a substantial demand of ₹597.93 lakhs, which could be significant if the appeal is unsuccessful.
The company has received an unfavorable GST order with a significant demand, but it plans to appeal and does not foresee a material impact, leading to a neutral sentiment.
Fortis Healthcare Limited (FORTIS) announced that its wholly-owned subsidiary, Fortis Health Management Limited, has received an order from the State Tax Officer (ST)- Group IX, Chengalpattu Intelligence Division, Tamil Nadu. The GST authority had initially issued a show cause notice for ₹570.00 lakhs (including ₹285.00 lakhs penalty) for the financial year 2023-24.
Following the subsidiary's response, the GST authority has now passed an order confirming a demand of ₹597.93 lakhs. This amount includes interest of ₹79.29 lakhs and a penalty of ₹259.32 lakhs. The show cause notice concerning the balance amount has been dropped. The alleged violation pertains to the denial of GST exemption for healthcare services claimed by the company.
Fortis Healthcare Limited has stated that, based on its assessment, the demand is not maintainable. The company is in the process of filing an appeal against this order. Fortis Healthcare does not foresee any significant impact on its financials, operations, or other activities as a result of this order.
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Fortis Healthcare Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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