Kovai Medical Center and Hospital Limited has received a show cause notice from tax authorities demanding Rs 1,74,960 for alleged GST violations related to UK visa medical services. The NABH-accredited healthcare provider disclosed this development to BSE Limited on January 27, 2026, under Regulation 30 of SEBI's listing obligations.

GST Audit Findings and Demand Details

The Office of the Assistant Commissioner, GST and Central Excise, Coimbatore issued the show cause notice following a comprehensive GST audit covering the period from 2019-20 to 2023-24. The primary contravention relates to non-payment of GST on charges collected for UK visa medical packages during FY 2023-24.

UK Visa Medical Package Service Issue

The tax authorities determined that Kovai Medical Center's UK visa medical package services do not qualify as exempt healthcare services under GST regulations. The company, empanelled by the UK Foreign Office for issuing medical certificates to UK visa applicants, collected charges for these services without discharging applicable GST.

The month-wise breakdown of taxable services during FY 2023-24 shows:

Comprehensive Audit Observations

The GST audit identified seven areas of non-compliance, though the company has already addressed six issues by paying the required tax and interest. The outstanding matter specifically concerns the UK visa medical package charges, which authorities argue fall outside the definition of exempt healthcare services under Notification No. 12/2017-Central Tax (Rate).

Legal Implications and Response Timeline

The show cause notice demands payment under Section 73(1) of the CGST Act, 2017, along with applicable interest under Section 50 and penalties under Section 73(9) read with Section 122(2)(a). The company has been directed to respond within 30 days to the Superintendent of GST & Central Tax, Coimbatore II-C Range.

Kovai Medical Center has committed to filing an appropriate response within the prescribed timeline. The company noted that if the demanded amount is paid within 30 days along with applicable interest, no penalty will be imposed, and all proceedings will be deemed concluded under Section 73(8) of the CGST Act, 2017.

Kovai Medical Center and Hospital Limited has announced a major expansion with the launch of two new healthcare facilities at its Coimbatore campus. The KMCH Institute of Neuro Sciences & OPD Block and KMCH Medical College Post Graduate Institute will commence operations from January 15, 2026, representing a significant milestone in the company's growth trajectory.

Major Infrastructure Investment

The healthcare provider has committed approximately ₹120.00 crores for this expansion project, which will be financed through a combination of internal accruals and bank borrowings. The investment timeline spans three months for the proposed capacity addition.

Advanced Healthcare Facilities

The new KMCH Institute of Neuro Sciences & OPD Block will house state-of-the-art medical infrastructure designed to enhance neurological healthcare services. The facility includes ultra-modern surgical theatres, specialized neuro ICUs, comprehensive master health checkup services, and expanded outpatient departments.

Current Operational Capacity

As of December 2025, Kovai Medical Center operates with substantial healthcare infrastructure and maintains steady operational metrics.

Strategic Healthcare Vision

The company has positioned this expansion as opening "a new era for Brain, Spine and Nerve healthcare." The KMCH Medical College Post Graduate Institute will complement the neuro sciences facility, creating an integrated healthcare and education ecosystem at the Avanashi Road campus in Coimbatore.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under the listing regulations, ensuring full transparency regarding this significant business development.

This expansion represents Kovai Medical Center's continued commitment to advancing specialized healthcare services, particularly in neurological treatments and medical education, while maintaining its position as a NABH accredited healthcare institution.