Star Health and Allied Insurance received a GST notice from the DGGI for 39 crore

 Star Health and Allied Insurance received a GST notice from the DGGI for 39 crore

The Star Health and Allied Insurance Company said in its BSE filing on Monday that it had got a notification from the Directorate General of GST Intelligence requesting payment of tax in the amount of 38.99 crore.

"The Company has received an Exhibition Cause Cum Demand Notice the the Directorate General of GST Intelligence, Maharashtra Zonal Section under Section 74(5) of the Central Taxation on Goods and Services Act, 2017 ("the Act"), dated October 6, 2023, alleging a tax demand of Rs. 38,99,77,849.

On Monday, the BSE, the company's shares finished 2.11% down at 582.55. The DGGI filed the tax claim because to "non-payment of GST liability on the premium received by the business itself as a follower Insurer under a 50% arrangement during the period of time of July 2017 to March 2023."

According to the filing, the firm would submit a suitable reply to the GST show cause notice within the required time frame. The value of the company's shares has decreased by 19.12% over the last year and by 0.63 percent YTD.

The private sector health insurance company was notified by the GST department in Chennai in August that it owed 104 crore rupees in tax as a result of inconsistencies in the returns that were submitted for the 2019–20 tax year.

The GST department discovered certain inconsistencies in the 2019–2020 statutory returns (GSTR1, GSTR2A, etc.). According to Star Health's submission, the GST department had discovered inconsistencies related to production and input mismatches as well as variations in invalid tax credits (ITC).

Reliance General Insurance Company (RGIC) has received many show cause letters for GST (Goods and Services Tax) debts totaling $922.58 crore. The DGGI has issued many notifications to the insurance company. One of them related to the GST of $478.84 billion. The notification stated paying taxes on the re-insurance commissions that were incurred as a result of the re-insurance services that were ceded to different Indian and international organizations.