Resolving a ₹1.2 Crore GST Demand for a Healthcare Services Provider

A Bengaluru healthcare services company facing a ₹1.2 crore GST demand their previous CA recommended simply paying.

A mid-sized healthcare services company in Bengaluru, operating diagnostic laboratories and outpatient clinics, with annual revenue of approximately ₹25 crore.

85%Reduction in the original GST demand — from ₹1.2 crore to ₹18 lakhs
IndustryHealthcare Services
Annual Revenue₹25 Crore
Original GST Demand₹1.2 Crore
Financial Years Involved2 Years

The company received a show-cause notice from GST authorities alleging a ₹1.2 crore demand on account of alleged wrongful availment of input tax credit across two financial years. Their existing CA did not have GST litigation experience and recommended paying the demand to avoid dispute.

  • ₹1.2 crore show-cause notice from GST authorities
  • Alleged wrongful availment of input tax credit across two financial years
  • Previous CA lacked GST litigation experience
  • Recommendation was to pay the demand rather than dispute it
Resolving a ₹1.2 Crore GST Demand for a Healthcare Services Provider

What We
Did About It.

We reviewed every transaction underlying the demand before deciding on a response strategy.

01
Full Transaction Review

Every transaction underlying the demand reviewed line by line.

02
Miscategorisation Identified

80% of the alleged wrongful ITC traced to legitimate business expenses miscategorised in original filings.

03
Technical Reply & Case Law

A detailed technical reply prepared, supported by relevant case law.

04
Rectified Returns Filed

Returns for the relevant periods rectified and refiled.

05
Represented Before the Authority

Direct representation before the adjudicating authority through to resolution.

Demand reduced to ₹18 lakhs — an 85% reduction from the original notice. The balance was settled within prescribed timelines. Total professional fee was a fraction of the demand. The client migrated their entire GST compliance and advisory mandate to Fincom Insights.

The recommendation to pay a ₹1.2 crore demand without a thorough technical review was not caution. It was the absence of expertise. Rigorous analysis, properly executed, reduced the exposure by ₹1.02 crore.

What This Demonstrates

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