A new show cause notice has been issued via the GST for Rs 66.7 cr, as per the reports from Star Health and Allied Insurance Co Ltd.
The two orders amounting to Rs 17.9 crore and around Rs 103.7 crore respectively, were obtained from the GST authorities, Tamil Nadu for the years 2018-19 and 2019-20, wherein the authorities have disputed input tax credit (lTC) claimed and used by the company, the standalone insurer mentioned in a regulatory filing.
With the commissioner’s appeals a petition was filed against the order that stands at Rs 17.9 cr and the hearing is under process.
A writ petition has been filed by the company with the Madras High Court against the order passed that stands at Rs 103.7 cr and the court set aside the order that the GST council has been passed and rendered a new order. A new show cause notice has been issued by the council that fetches the amount liable to get paid to Rs 66.7 cr and the company answered against the new show cause notice. The legal counsel of Star Heath has advised the company that the obligation might not emerge, further said in filing in the Stock exchange.
Read Also: Council to Sort Out GST Tax Credit Issues for Life Insurers
The company reported a 16.4% growth in Gross Written Premium (GWP) at Rs 3,605.8 crore in the quarter that ended December 31, 2023, against Rs 3,096.7 crore in the corresponding quarter last year. It posted a Profit after Tax (PAT) at Rs 289.5 crore in the quarter that ended December 31, 2023, an increase of 37.6% when compared with Rs 210.5 crore in Q3 of FY23.