HDFC Life receives a Rs 942 crore GST demand notice

26 Jun 2023 , 12:48 PM

On Friday, HDFC Life Insurance announced that it has been sent with a demand notice for more than Rs 942 crore in unpaid GST. The issue is the assertion of an input tax credit against the provision of services, which, according to the Directorate of Goods and Services Tax (GST) Intelligence (DGGI), are not eligible for such assertions.

‘HDFC Life Insurance Company has received a show cause cum demand notice from the Directorate General of GST Intelligence, Mumbai Zonal Unit asking the Company to show cause why a tax of Rs 942,18,46,028 pertaining to the period July 2017 to FY 2022, should not be demanded from the Company,’ said HDFC Life in a regulatory filing.

HDFC Life stated that the input tax credit (ITC) dispute is an issue that affects the entire industry and that the business will take the proper actions in due course to respond to the show cause notice and contest the matter.

The private sector insurer continued, ‘It should be noted that Rs 250 crore has previously been deposited under protest with the authority (DGGI) in this matter.’

On June 20, HDFC Life said that HDFC Ltd, one of the company’s promoters, had received approval from the Competition Commission of India to boost its stake to more than 50%.

The Insurance Regulatory and Development Authority of India (IRDAI) has given its clearance for the transfer of shares of HDFC Life from HDFC Ltd to HDFC Bank, according to a filing made by HDFC Life on Friday.

In addition, IRDAI approved HDFC Limited’s purchase of additional HDFC Life shares in order for HDFC Limited to control more than 50% of HDFC Life’s total share capital, according to a statement from HDFC Life.

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