Star Health & Allied Insurance receives a tax demand notice for Rs 39 crore

10 Oct 2023 , 02:27 PM

The Directorate General (DG) of GST Intelligence Mumbai sent a Rs 39 crore show cause notice on Star Health and Allied Insurance on Monday.

The Central Goods and Services Tax Act, 2017 (the ‘Act’), Section 74(5), alleges a tax demand of Rs 38,99,77,849. ‘The company has received a show cause cum demand notice from the Directorate General of GST Intelligence, Mumbai zonal unit,’ the company stated in an exchange filing.

According to the complaint, the purported demand and the contested show cause cum demand notice concern the non-payment of GST liability on the premium that the company received as a follower insurer under a coinsurance agreement from July 2017 to March 2023.

The show cause cum demand notice relates to concerns that affect the entire industry, and the company will file an appropriate response to the aforementioned notice within the established dates, according to the advise of its tax advisors, the filing further stated.

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