Star Health and Allied Insurance said on October 9 that it has received a tax demand of Rs 38.99 crore from the Directorate General of GST Intelligence, Mumbai Zonal Unit.
Star Health will be filing a response to the demand notice, it said in an exchange filing.
The filing stated, “the Company has received a Show Cause Cum Demand Notice from the Directorate General of GST Intelligence, Mumbai Zonal Unit under Section 74(5) of the Central Goods and Services Tax Act, 2017 (“the Act”), October 6, 2023 alleging a tax demand of Rs 38,99,77,849/-”
The alleged demand and the impugned Show Cause Cum Demand Notice pertains to non-payment of GST liability on the premium received by the company as a follower Insurer under a coinsurance arrangement during the period July 2017 to March 2023, the filing added.
The company has been asked to show cause as to why the GST “should not be demanded and recovered under Section 74(5) of the Central Goods and Services Tax Act, 2017 (“the Act”) along with interest under Section 50 of the Act and penalty under Section 74(5) of the CGST Act, 2017”. The company received the notice on October 6.
The notice refers “to matters relating to industry wide issues”, the filing informed, and added that the company will be filing appropriate response to the said Show Cause Cum Demand Notice within the prescribed timelines.
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