NSE/BSE Codes: BSE: 544008, NSE: MAXESTATES

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under SEBI Listing Regulation 30 regarding receipt of GST show cause notice by subsidiary company Pharmax Corporation Limited.

Involved Parties / Authorities:

  • Opposing Party: Department of Trade and Taxes, Government of NCT of Delhi
  • Agency: Office of the Assistant Commissioner / GSTO, New Delhi
  • Issuing Authority: Department of Trade and Taxes, Government of NCT of Delhi
  • Affected Entity: Pharmax Corporation Limited (subsidiary of Max Estates Limited)

Date / Timeline of Event:

  • Notice Date: July 27, 2026 (Form GST DRC-01)
  • Disclosure Date: July 28, 2026 at 17:18 hrs (IST)
  • Financial Year in Question: FY 2022-23
  • Governing Laws: Central Goods and Services Tax Act, 2017 and Delhi Goods and Services Tax Act, 2017
  • Legal Section: Section 73

Brief Description of Outcome / Dispute:

Pharmax Corporation Limited received a show cause notice alleging excess/ineligible input tax credit claims for FY 2022-23. The notice proposes demand of tax, interest, and penalty totaling ₹5,90,00,108. The matter is currently at the show cause notice stage with no final demand or order passed.

Impact of Outcome:

Financial Impact:

  • Proposed demand aggregate: ₹5,90,00,108
  • Detailed breakdown:
  • Tax component: ₹3,30,26,162
  • Interest component: ₹2,26,71,330
  • Penalty component: ₹33,02,616
  • The final financial impact will depend on the outcome of adjudication proceedings
  • No immediate financial impact as matter is at preliminary stage

Operational / Business / Strategic Impact:

  • Explicitly stated: "There is no impact on the operations or other activities of the Company/subsidiary at this stage"
  • Business operations continue normally without disruption
  • No strategic consequences mentioned in the disclosure

Other Implications:

  • Compliance requirement to respond to show cause notice
  • Potential reputational impact from GST dispute disclosure
  • Regulatory compliance implications under SEBI Listing Regulations

Next Steps / Required Actions:

  • Pharmax Corporation Limited is reviewing the matter
  • Company will file a reply to the show cause notice in accordance with applicable laws
  • Adjudication proceedings will follow the reply submission
  • Company committed to keeping stakeholders informed about material developments
  • Response timeline not explicitly specified in the notice