Artemis Medicare gets ₹11.11 Cr GST show cause notice for FY23
- Artemis Medicare Services received a ₹11.11 crore show cause notice from CGST Gurugram
- Notice relates to alleged non-remittance of GST on in-patient supplies for FY23
- Company plans to file writ petition in Punjab & Haryana High Court to connect with prior case
- Previous litigation on similar grounds resulted in a stay of proceedings by the High Court
*this image is generated using AI for illustrative purposes only.
Artemis Medicare Services Limited received a show cause notice of ₹11.11 crore from the CGST authority in Gurugram for financial year 2023. The notice alleges non-remittance of GST on medicines and consumables supplied to in-patients.
The Office of the Assistant Commissioner, CGST, Gurugram, issued the notice on September 28, 2026. It pertains to the period from April 1, 2022, to March 31, 2023. The tax department claims the company charged MRP inclusive of GST but failed to remit the tax to the government.
Legal Response and Prior Litigation
The company disclosed that it had previously filed a writ petition before the Hon'ble High Court of Punjab & Haryana, Chandigarh. This earlier petition related to a show cause notice for an earlier period concerning the same matter. In that case, the High Court granted a stay on further proceedings via an interim order.
Artemis Medicare is currently preparing to file a new writ petition regarding the September 2026 notice. The company intends to connect this new matter with the previous pending writ where the stay has already been granted.
Financial Implications
| Particulars | Details |
|---|---|
| Authority | Office of the Assistant Commissioner, CGST, Gurugram |
| Period | April 1, 2022 to March 31, 2023 |
| Claim Amount | ₹11.11 crore plus interest and penalty |
| Action Taken | Filing writ petition in High Court |
The expected financial implication is stated as ₹11.11 crore along with applicable interest and penalty. No penalty or restriction has been imposed yet pursuant to this specific communication. The company asserts that the information provided is true and correct as per SEBI Listing Regulations.
What the Numbers Show
The disclosure highlights a recurring regulatory exposure rather than an isolated incident. The company faces a fresh claim for FY23 while already contesting similar allegations for prior periods in the same court. This pattern suggests a systemic interpretation dispute regarding GST applicability on healthcare service components like implants and consumables supplied to in-patients.
Historical Stock Returns for Artemis Medicare Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.19% | +8.13% | +14.83% | +69.79% | +58.00% | +938.53% |
How might the High Court's final ruling on this GST interpretation impact the broader healthcare sector's compliance costs and pricing models?
Could the recurring nature of these notices trigger a wider investigation by CGST authorities into Artemis Medicare's operations for financial years beyond 2023?
What is the potential impact on Artemis Medicare's credit rating or borrowing capacity if the ₹11.11 crore liability plus penalties is ultimately upheld?
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