Max Healthcare Institute Limited announced that its wholly-owned subsidiary, Alps Hospital Limited, has received a show cause cum demand notice from the Directorate General of Goods & Services Tax Intelligence. The notice alleges non-payment of GST on variable management fees, demanding approximately ₹55.23 crore in GST, plus applicable interest and a penalty of a similar amount. The company is preparing its submissions against this demand.
Subsidiary Receives Significant GST Notice
Max Healthcare Institute Limited has disclosed a significant development concerning its wholly-owned subsidiary, Alps Hospital Limited (formerly known as Max Hospitals and Allied Services Limited). The subsidiary has been issued a show cause cum demand notice from the Office of the Pr. Additional Director General, Mumbai Zonal Unit, Directorate General of Goods & Services Tax Intelligence.
The notice, received on August 25, 2026, alleges the non-payment of Goods and Services Tax (GST) on variable management fees. The total alleged GST demand amounts to ₹55,23,52,071, along with applicable interest.
Potential Financial Implications
Furthermore, the notice imposes a penalty of ₹55,23,52,071 under Section 74(1) and 74A(5)(ii) of the Central Goods and Services Tax Act, 2017. An additional penalty of ₹55,23,52,071 has been levied under Section 122(2)(b) of the same act. In total, the alleged demand, including penalties, aggregates to approximately ₹110.47 crore plus interest.
The management of Max Healthcare Institute Limited has stated that they are in the process of filing submissions against this demand and are actively preparing their response.
Disclosure Compliance
This disclosure is made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details of the litigation are provided as an annexure to this communication. The company will also host this disclosure on its website, www.maxhealthcare.in.
Source: BSE
