Kovai Medical Center and Hospital Limited Receives GST Show Cause Notice Worth Rs 1.75 Lakh

2 min read | Published on 27 Jan 2026, 06:34 PM |Updated on 27 Jan 2026, 06:34 PM

Reviewed by

Naman SScanX News Team

Key Highlights

Kovai Medical Center and Hospital Limited received a GST show cause notice demanding Rs 1,74,960 for non-payment of GST on UK visa medical package charges during FY 2023-24. The notice stems from a comprehensive audit covering 2019-20 to 2023-24, with the company required to respond within 30 days. The demand includes equal amounts of CGST and SGST at Rs 87,480 each, along with applicable interest and penalties.

*this image is generated using AI for illustrative purposes only.

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.

Parameter	Details
Notice Date	January 27, 2026
Total Demand	Rs 1,74,960
CGST Component	Rs 87,480
SGST Component	Rs 87,480
Applicable Sections	Section 73(1) of CGST Act, 2017

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:

Month	Taxable Value (Rs)	CGST @ 9% (Rs)	SGST @ 9% (Rs)
September 2023	30,600	2,754	2,754
October 2023	90,000	8,100	8,100
November 2023	1,72,800	15,552	15,552
December 2023	2,08,800	18,792	18,792
January 2024	1,63,800	14,742	14,742
February 2024	1,53,000	13,770	13,770
March 2024	1,53,000	13,770	13,770
Total	9,72,000	87,480	87,480

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.

Historical Stock Returns for Kovai Medical Center Hospital