Why did HDFC Life Insurance receive a Rs. 942 billion GST demand notice?
On Friday, HDFC Life Insurance received Rs. 942 billion GST demand notice for 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.
Response of HDFC Life Insurance on the Rs. 942 billion GST demand notice
“HDFC Life Insurance Company was served with a cause-of-action cum demand notification from the Directorate General of GST Intelligence, Mumbai Zonal Unit, posing the Company to show cause why a tax of Rs. 942,18,46,028 pertaining to the period of July 2017 to FY 2022 shouldn’t be demanded from the Company,” HDFC Life Insurance stated in a regulatory filing.
The private sector insurer continued, “It should be noted that Rs 250 crore has previously been submitted under complaint with the authority (DGGI) in this matter.”
On June 20, HDFC Life said that HDFC Insurance 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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