Star Health and Allied Insurance company has disclosed in its filing with the Bombay Stock Exchange (BSE) that it has received a notice from the Directorate General of GST Intelligence (DGGI) for a tax payment of ₹38.99 crore.
The notice was issued under Section 74(5) of the Central Goods and Services Tax Act, 2017, alleging non-payment of tax demand, explained the company at its BSE filing.
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On Monday, the company’s shares on the Bombay Stock Exchange (BSE) concluded with a decline of 2.11%, settling at ₹582.55 per share. The tax demand from the Directorate General of GST Intelligence (DGGI) was issued due to the company’s failure to fulfil its GST liability on the premiums received as a follower insurer within a coinsurance arrangement spanning from July 2017 to March 2023.
Star Health and Allied Insurance Company intends to submit an appropriate response to the GST show cause notice within the stipulated timeframe. The company’s share value has declined by 0.63% year-to-date and by 19.12% over the past year.
During August, the private sector health insurance company received a notification from the GST department in Chennai, demanding a tax payment of ₹104 crore. This demand stemmed from identified inconsistencies in the filed statutory returns, such as GSTR1, GSTR2A, and others, for the fiscal year 2019-2020. The discrepancies were related to output and input mismatches and variations in ineligible tax credits (ITC).
Reliance General Insurance Company (RGIC) recently received multiple show-cause notices for GST dues totalling ₹922.58 crore in a different case. One of the notices pertained to GST amounting to ₹478.84 crore, specifically related to tax payments on reinsurance commissions booked through services provided to various Indian and foreign entities.
Related: DGGI Issues 4 SCN To Reliance General for Demanding GST Payment