Nephrocare Health Services Limited Challenges GST Orders in High Court

Nephrocare Health Services Limited Challenges GST Orders in High Court​

Nephrocare Health Services Limited has filed a writ petition with the Hon'ble High Court of Jammu & Kashmir and Ladakh at Srinagar, challenging orders issued by Goods and Services Tax (GST) authorities. The petition, filed on April 2, 2026, carries case number WP(C)/646/2026.

The dispute originates from a Show Cause Notice dated September 18, 2024, alleging a mismatch between turnover reported in Form 26AS and GST returns (GSTR-1) for FY 2020-21. Despite the company’s detailed replies and supporting documentation, which clarified that the turnover reflected in Form 26AS is PAN-based and includes revenues across multiple GST registrations, the GST authorities issued an Order-in-Original dated January 13, 2025, raising a tax demand of ₹1.46 crore. This was followed by a demand for interest and penalty totaling ₹0.90 crore and ₹0.15 crore, respectively.

The company subsequently filed a rectification application, highlighting errors including the fact that dialysis and allied healthcare services are exempt from GST. This application was rejected on March 6, 2026. An appeal filed on March 7, 2026, was also rejected due to a delay. Recovery proceedings were initiated, including an attachment notice issued to the company’s banker.

The GST Department has raised a total demand of approximately ₹2.51 crore, comprised of ₹1.46 crore in tax, ₹0.90 crore in interest, and ₹0.15 crore in penalty. Nephrocare Health Services Limited believes the demand is not tenable and does not anticipate a material financial impact.

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