Bajaj Finserv’s insurance unit gets demand notice of Rs 1,010 crore from GST Department

4 Oct 2023 , 09:28 AM

The insurance arm of Bajaj Finserv, Bajaj Allianz General Insurance Company Limited (BAGIC), received a show cause cum demand notice from the Directorate General of Goods and Services Tax (GST) Intelligence on September 29 alleging a tax demand of Rs 1010.05 crore, the financial services company announced on Tuesday.

The notification was issued by the authority’s Pune office and referred to the failure to pay GST in two locations between July 2017 and March 2022.

The first is failure to pay tax on coinsurance premiums accepted as a follower in coinsurance transactions. Second, failure to pay the GST on the accepted reinsurance commission on the reinsurance premium transferred to various Indian and overseas reinsurance businesses.

Nonetheless, in its filing, Bajaj Finserv assured of a suitable response.

The Show Cause Cum Demand Notice refers to the two matters that are industry-wide issues and based on the advice of its tax advisors, BAGIC will be filing an appropriate response to the said Show Cause Cum Demand Notice within the prescribed timelines, the business stated in a regulatory filing.

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