NewsDr. Agarwal's Health Care Receives GST Show Cause Notice for FY 2022-23 with Potential Demand of Rs. 15.08 CroresDr. Agarwal's Health Care Receives GST Show Cause Notice for FY 2022-23 with Potential Demand of Rs. 15.08 Crores
Dr. Agarwal's Health Care Limited received a GST Show Cause Notice dated May 14, 2026, from the Assistant Commissioner, GST & Central Excise, Nungambakkam, Chennai, alleging discrepancies in FY 2022-23 filings including excess ITC claims, RCM short payments, and e-invoicing non-compliance, with a potential demand of Rs. 15.08 Crores including interest and penalty. The company stated it is reviewing the notice and does not anticipate any material impact on its financials or operations.
*this image is generated using AI for illustrative purposes only.
Dr. Agarwal's Health Care Limited has disclosed the receipt of a Show Cause Notice (SCN) dated May 14, 2026, from the Office of the Assistant Commissioner, GST & Central Excise, Nungambakkam, Chennai 600 034. The notice alleges certain discrepancies in the returns and statements filed by the company for the financial year 2022-23. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was filed on May 15, 2026.
Nature of Allegations
The SCN outlines multiple areas of alleged non-compliance by the company in its GST filings for FY 2022-23. The following discrepancies have been cited by the GST authorities:
- Difference in Output Turnover
- Short Payment of Tax under Reverse Charge Mechanism (RCM)
- Exempted / Nil rate / Non-GST supplies
- Excess claim of Input Tax Credit (ITC)
- Claim of ineligible ITC
- Non-compliance of E-invoicing
- Penalty and interest for late or improper reporting
Key Details of the Show Cause Notice
The following table summarises the key particulars of the SCN as disclosed by the company:
| Parameter: | Details |
|---|---|
| Notice Date: | May 14, 2026 |
| Issuing Authority: | Office of the Assistant Commissioner, GST & Central Excise, Nungambakkam, Chennai |
| Period Under Scrutiny: | Financial Year 2022-23 |
| Potential GST Demand: | Rs. 15.08 Crores (along with interest and penalty) |
| Response Deadline: | Within 30 days of receipt of the SCN |
| Disclosure Regulation: | Regulation 30 of SEBI Listing Regulations |
Company's Response and Financial Outlook
Dr. Agarwal's Health Care Limited has stated that it is currently examining the notice and will take appropriate steps, including submission of a reply within the prescribed time period. The company has further indicated that it does not envisage any relevant impact on its financials, operations, or other activities as a result of this notice. The disclosure was signed by Thanikainathan Arumugam, Company Secretary and Compliance Officer, and the information has also been made available on the company's official website.
Historical Stock Returns for Dr. Agarwal's Health Care
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.35% | -2.38% | -2.06% | -11.48% | +14.52% | +9.76% |
If GST authorities uphold the full demand of Rs. 15.08 crores plus interest and penalties, how significantly could the total liability impact Dr. Agarwal's Health Care's cash flows and profitability for FY 2026-27?
Could this GST scrutiny for FY 2022-23 trigger similar Show Cause Notices for subsequent financial years, potentially exposing the company to a larger cumulative tax liability?
How might unresolved GST compliance issues affect Dr. Agarwal's Health Care's upcoming fundraising plans, credit ratings, or investor sentiment given its relatively recent stock market listing?
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