New India Assurance Faces Rs. 2,298 Crore GST Demand; Insurer Vows to Contest Notice
Public sector insurance giant, New India Assurance Company Ltd, has been served a significant Goods and Services Tax (GST) show cause notice amounting to Rs. 2,298.06 crore for the period spanning April 2018 to March 2023.
The notice, issued on June 26 by the Additional Commissioner of CGST, Mumbai-South, under Sections 74 and 123 of the Central and Maharashtra GST Acts, alleges non-payment, short payment, erroneous refunds, or wrongful availment of input tax credit. These alleged lapses have been categorized under fraud, willful misstatement, or suppression of facts, as per Section 74(7). Additionally, the company has been accused of failing to furnish required information returns within the prescribed timeline, as mandated under Section 150 read with Section 123.
The communication was delivered in Form DRC-01, and it demands an explanation as to why the said amount should not be recovered from the insurer.
In a regulatory filing with the stock exchanges, New India Assurance confirmed the receipt of the notice and expressed confidence in its legal standing. "The company believes it has a strong case on merit. Based on advice from our tax consultants, a detailed response will be submitted to the Adjudicating Authority within the stipulated timeframe," the statement read.
On the financial front, the development weighed on investor sentiment, with shares of New India Assurance closing at ₹185.80 on the BSE, marking a decline of ₹4.45 or 2.34% on Thursday.
This GST notice adds to the recent string of regulatory scrutiny seen across sectors, as authorities ramp up enforcement under the indirect tax regime.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
