GST Show Cause Notice of Rs. 11.11 Crore Received for FY 2022-23
The company received a Show Cause Notice dated September 28, 2026 from the Assistant Commissioner, CGST, Gurugram for FY 2022-23.
- Show Cause Notice Date
- September 28, 2026
- Notice Amount Claimed
- Rs. 11.11 Crore plus interest & penalty
- Period Covered
- April 1, 2022 to March 31, 2023 (FY 2022-23)
- Allegation
- GST collected in MRP charged to in-patients on medicines, consumables and implants was not remitted
- Legal Status
- Similar earlier-period notice under writ petition before Punjab & Haryana High Court with interim stay granted
What was received
The company informed the exchanges that it received a Show Cause Notice dated September 28, 2026 from the Office of the Assistant Commissioner, CGST, Gurugram. Receipt was recorded on September 29, 2026 at 10:30 A.M. (IST).
The allegation
- The GST department alleges the company charges MRP from in-patients (IPD) on medicines, consumables and implants supplied while providing healthcare services.
- That MRP includes GST, which the department says was not remitted to the Government.
- Period covered: April 1, 2022 to March 31, 2023 (FY 2022-23).
Amount involved
- Quantum of claim and expected financial implication: Rs. 11.11 Crore and interest & penalty thereon.
- No penalty, restriction or sanction has been imposed through this communication, and the authority has not listed aberrations or non-compliances in it.
Legal position
The company had already shared a writ petition before the Hon'ble High Court of Punjab & Haryana, Chandigarh against a Show Cause Notice issued for an earlier period on the same matter; that disclosure was made on November 22, 2024. In that writ, the High Court passed an interim order staying further proceedings.
For this new notice, the company is in the process of update a writ before the same High Court and intends to connect the matter with the earlier pending writ where a stay has already been granted.
How to read it
A Show Cause Notice is a tax demand at the initial stage — the company gets to respond and contest it, and the final liability may differ from the amount stated. Here the dispute is a recurring one on the taxability of medicines and implants supplied to in-patients, with an earlier period already before the courts and stayed. Investors may view the disclosure as a continuing tax dispute with a stated exposure of Rs. 11.11 Crore plus interest and penalty, rather than a crystallised payment.
More numbers
- Quantum of claim / expected financial implicationRs. 11.11 Crore
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