Max Healthcare Institute Limited has received a significant GST demand order from tax authorities, requiring the healthcare provider to address alleged tax discrepancies totaling over ₹12 crores including penalties. The company disclosed this development through a regulatory filing.

GST Order Details

The Office of the Principal Commissioner, Central Goods and Service Tax, Delhi South Commissionerate issued the order. The order pertains to alleged discrepancies in the provisions of Goods and Services Tax involving Input Tax Credit and tax recovery matters.

The demand has been raised under sections 50(1) and 50(3) of the CGST Act, 2017, with interest calculations to be applied at the appropriate rate on the principal demand amount.

Company's Response and Impact Assessment

Max Healthcare Institute has indicated that management plans to file an appeal against the GST order. The company has assessed that other than the financial amount to be paid, there is no other impact on the financial, operational, or other activities of the organization.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also hosted this information on its official website at www.maxhealthcare.in as required under regulatory guidelines.

Legal Framework

The order addresses alleged contraventions related to Input Tax Credit provisions under the GST framework. Such orders typically arise from tax audits or investigations where authorities identify discrepancies in tax filings or credit claims made by companies.

Max Healthcare Institute will now need to navigate the appeals process while managing the potential financial implications of the demand order. The outcome of the appeal will determine the final liability and any subsequent impact on the company's financial position.

Goldman Sachs has issued a Buy rating for Max Healthcare Institute , setting a target price of ₹1,325.00 per share. This recommendation reflects the investment bank's positive assessment of the healthcare provider's investment prospects.

Analyst Recommendation Details

The following table summarizes Goldman Sachs' recommendation:

Company Profile

Max Healthcare Institute operates as a prominent player in the healthcare sector. The company is classified as a large-cap stock, indicating its substantial market capitalization and established market position. As a healthcare provider, the company operates in a sector that has shown resilience and growth potential.

Investment Implications

The Buy rating from Goldman Sachs suggests that the investment bank views Max Healthcare Institute favorably for potential investors. The target price of ₹1,325.00 represents the analyst's assessment of the stock's fair value based on their evaluation of the company's fundamentals and market position.

This recommendation comes from one of the leading global investment banks, adding credibility to the positive outlook for Max Healthcare Institute's stock performance.