Max Healthcare Institute has received a Goods and Services Tax (GST) claim of ₹55.20 crores concerning possible excess input tax credit (ITC). The healthcare company has responded by initiating both rectification and appeal processes to address this significant tax matter.

GST Claim Details

The GST authorities have raised a claim against the company for what they consider to be excess input tax credit availed by Max Healthcare Institute. The claim amount stands at ₹55.20 crores, representing a substantial sum that requires immediate attention from the company's management and legal teams.

Company Response Strategy

Max Healthcare Institute has taken a proactive approach to address the GST claim by launching a dual-pronged strategy. The company has simultaneously initiated rectification procedures and appeal processes to contest the claim raised by the tax authorities.

The rectification process allows the company to present additional documentation and clarifications that may resolve the matter at the departmental level. Concurrently, the appeal process provides a formal legal avenue to challenge the claim if the company believes it has been incorrectly assessed.

Regulatory Compliance Impact

This GST claim highlights the ongoing challenges healthcare companies face in navigating complex tax regulations. Input tax credit claims in the healthcare sector often involve intricate calculations and interpretations of GST provisions, making them subject to scrutiny by tax authorities.

The outcome of Max Healthcare Institute's rectification and appeal processes will be closely watched by industry stakeholders, as it may set precedents for similar cases in the healthcare sector. The company's ability to successfully resolve this matter will demonstrate its compliance framework's effectiveness and its capacity to handle regulatory challenges.

Max Healthcare Institute faces regulatory scrutiny as it received a significant GST demand from Delhi authorities, while simultaneously reporting strong quarterly financial performance that underscores the company's operational resilience.

GST Demand Details

The healthcare provider received an order from the Office of the GST Officer, Department of Trade and Taxes, GNCT of Delhi, on December 30, 2025, regarding alleged excess availment of Input Tax Credit. The financial implications are substantial:

Max Healthcare is currently seeking rectification of the order and has indicated it may file an appeal before the appropriate authority if the outcome remains unfavorable. The management has acknowledged that the final resolution of these proceedings may impact the company's financials.

Strong Q2 FY26 Financial Performance

Despite regulatory challenges, Max Healthcare Institute delivered impressive second quarter results, demonstrating robust operational performance across key metrics:

The year-on-year growth was primarily driven by an increase in outpatient department visits, reflecting strong patient demand and operational efficiency improvements.

Operational Excellence and International Growth

Max Healthcare's operational metrics showed consistent improvement, with EBITDA per bed reaching ₹73.4 lakh in Q2 FY26, compared to ₹71.2 lakh in Q2 FY25 and ₹68.5 lakh in Q1 FY26. For existing units specifically, EBITDA per bed was ₹76.5 lakh, representing a 7% year-on-year increase.

International patient revenue demonstrated particularly strong momentum, reaching ₹231 crore with impressive growth rates:

• 25% year-on-year growth
• 11% quarter-on-quarter growth
• Accounting for approximately 9% of total hospital revenue

Market Response

Shares of Max Healthcare Institute ended at ₹1,046.60, declining by ₹17.50 or 1.64% on the BSE, likely reflecting investor concerns about the GST demand despite the strong quarterly performance. The market reaction suggests investors are weighing the potential financial impact of regulatory proceedings against the company's demonstrated operational strength and growth trajectory.