HDFC Life Faces ₹152.87 Crore GST Demand, Plans to Appeal

2 Jan 2025 , 09:10 AM

HDFC Life Insurance Company received two GST orders from the Assistant Commissioner of State Tax (INV-6) in Mumbai on December 31, 2024. The Orders are for the period April 1, 2020 to March 31, 2021.

The tax demand amounting to ₹152.87 crores bears interest of ₹117.71 crores. These orders are regarding short reversal of input tax credit on common services associated with exempted supplies and excess claim of input tax credit under the reverse charge mechanism. No penalty has been imposed on HDFC Life Insurance.

The company says that these orders would not impact its financial operations to any material extent. Net profit for HDFC Life rose by 14.8% YoY to ₹433 crore from ₹377 crore in Q2 FY25.

New business premium was up by 14%, a little short of the estimate ₹8,167 crore at ₹8,097 crore. Total net premium income surged 12% YoY for HDFC Life at ₹16,570 crore during July-September. The total annual premium equivalent (APE) of HDFC Life expanded 26.7% year-over-year at ₹3,858 crore in comparison with the ₹3,045 crore noted last year.