Paras Healthcare Limited appeals Rs 84.247 crore GST order

Paras Healthcare Limited has appealed a Panchkula goods and services tax, or GST, order involving about Rs 84.247 crore, including tax, penalties and interest. The March 28, 2026 appeal challenges an order arising from a January 2019 to March 2023 audit and represents about 98.7% of Paras Healthcare’s Rs 85.339 crore quantified indirect-tax demands.

What is the Paras Healthcare GST order under appeal?

The Paras Healthcare GST order confirmed a Rs 28.082 crore GST demand and stated two equivalent penalties of Rs 28.082 crore each, taking the aggregate exposure, including interest, to about Rs 84.247 crore. The Additional Commissioner, Central Tax Audit, CGST Audit Commissionerate, Panchkula issued the order on December 30, 2025 after auditing Paras Healthcare’s Panchkula Hospital for January 2019 through March 2023.

GST is an indirect tax on supplies of goods and services. The audit began with Form ADT-01 dated February 20, 2024, and a demand-cum-show-cause notice followed on June 26, 2025. The notice proposed recovery of Rs 28.082 crore in GST, together with interest and penalties, under Sections 74 and 76 of the Central Goods and Services Tax Act, 2017, or CGST Act.

The December 2025 order followed three replies that Paras Healthcare filed on August 29, September 12 and October 13, 2025. Paras Healthcare contested the proposed demand in those submissions. No decision by the Commissioner (Appeals) is disclosed, so the Rs 84.247 crore amount remains under appeal rather than an amount finally determined through the appellate process.

Why did the Panchkula GST demand arise?

The Panchkula GST demand arose from the tax authority’s stated concerns over revenue-sharing income from outsourced contracts and medicines and consumables provided to in-patients. The June 2025 notice also cited interest on late tax payments and non-payment of an additional liability declared in annual returns in proposing the Rs 28.082 crore GST recovery.

The disclosure does not define the outsourced contracts, but the notice alleges that GST was not paid on revenue-sharing income from them. It separately alleges that tax was collected but not paid on IPD medicines and consumables. The stated allegations therefore concern both the treatment of particular hospital-related income and the remittance of tax collected on specified supplies.

The December 2025 order is larger than the asserted GST component because it includes penalties and interest. It confirmed Rs 28.082 crore of GST and recorded equivalent penalties of Rs 28.082 crore each under Sections 74 and 76 and Section 122(2)(b) of the CGST Act, with the aggregate described as approximately Rs 84.247 crore inclusive of interest. The financial effect will depend on the appeal’s treatment of the tax, interest and penalties.

How large is the Paras Healthcare GST appeal among its tax cases?

The Panchkula GST appeal is the largest quantified indirect-tax matter disclosed for Paras Healthcare. The company reported seven indirect-tax cases involving Rs 85.339 crore, while the Panchkula order’s about Rs 84.247 crore aggregate equals about 98.7% of that total. About Rs 1.092 crore is therefore represented by the other quantified company indirect-tax matters.

Paras Healthcare also reported 15 direct-tax cases involving Rs 1.361 crore where amounts were quantifiable. However, 11 of the 15 pending income-tax and tax-deducted-at-source, or TDS, assessment matters had no ascertainable amount as of October 14, 2026. TDS is tax withheld at source from specified payments, meaning the disclosed Rs 1.361 crore does not measure the potential financial impact of every company direct-tax matter.

The company and subsidiary disclosures show a marked difference in quantified indirect-tax scale. Paras Healthcare’s seven company cases total Rs 85.339 crore, compared with four subsidiary indirect-tax cases totaling Rs 2.23 crore. The company’s two subsidiary direct-tax cases involved Rs 99 lakh, while the direct-tax amount for the company itself excludes the 11 matters that could not be quantified.

One subsidiary matter accounts for most of the disclosed subsidiary indirect-tax amount. Plus Medicare Hospitals Private Limited received a January 4, 2024 GST show-cause notice in Srinagar alleging suppression of tax during accounting year 2023-24, with cumulative tax, interest and penalty of up to Rs 2.07 crore. Paras Healthcare responded on February 3, 2024 that there had been no suppression and that tax at applicable rates had been deposited; the matter remained pending.

What has Paras Healthcare paid and what must happen next?

Paras Healthcare filed its appeal before the Commissioner (Appeals), CGST Commissionerate, Panchkula on March 28, 2026 and paid a Rs 2.808 crore pre-deposit. The pre-deposit equals 10% of the Rs 28.082 crore GST demand and was identified by Paras Healthcare as required for filing the appeal.

The Rs 2.808 crore payment is not described as a settlement of the December 2025 order. It is a procedural pre-deposit linked to the appeal, whereas the order’s aggregate was about Rs 84.247 crore inclusive of interest. For the disputed amount to change, the appeal must address the authority’s allegations regarding outsourced-contract revenue, medicines and consumables, late-payment interest and annual-return liabilities.

The disclosure identifies no appellate hearing date, stay order or ruling after the March 2026 appeal. It records the matter as pending. That status distinguishes the adjudication order dated December 30, 2025 from a final conclusion that the claimed GST, penalties and interest are payable.

Conclusion

Paras Healthcare’s Panchkula appeal concentrates its quantified company indirect-tax exposure in one proceeding: about Rs 84.247 crore of a Rs 85.339 crore total. The order arose from the authority’s stated treatment of outsourced-contract revenue, medicines and consumables, payment timing and annual-return disclosures, with penalties and interest materially increasing the amount beyond the Rs 28.082 crore GST demand.

The next disclosed step is the pending appeal filed on March 28, 2026 after a Rs 2.808 crore pre-deposit. Readers should watch for an appellate decision or official update on the December 30, 2025 order, particularly because the disclosure provides no hearing date, stay or post-appeal determination.