HDFC Life Insurance receives GST Demand worth Rs.270.58 Crore

HDFC Life Insurance Company announced on Wednesday (January 1) that it has received two GST orders from the Assistant Commissioner of State Tax (INV-6), Investigation-A, Mumbai, Maharashtra, on December 31, 2024.

“We want to share with you that the Company has received GST Orders from the Assistant Commissioner of State Tax (INV-6), Investigation-A, Mumbai, Maharashtra (two separate Orders) on December 31, 2024,” HDFC Life Insurance Company stated in a regulatory filing.

The orders cover the financial year from April 1, 2020 to March 31, 2021. They include a total tax demand of Rs.152.87 crore and interest of Rs.117.71 crore. No penalties have been levied.

The charges include a short reversal of proportionate input tax credit on common services due to exempted suppliers and an excess use of input tax credit under the reverse charge method.

HDFC Life asserted that the orders will have no major detrimental effect on its financial operations. The company intends to challenge the orders by filing an appeal with the Appellate Authority within the timeframe specified.

“These orders will have no adverse material impact on the financial operations of the company and the same shall be further contested by way of an appeal before the Appellate Authority,” according to the statement.

HDFC Life Insurance Company Limited’s shares closed at Rs.617.15, up Rs.0.25, or 0.041% on the BSE.