Star Health and Allied Insurance Company received GST Notice of Rs.38.99 Crore

The Directorate General of GST Intelligence (DGGI) has sent Star Health and Allied Insurance Company a notice requesting a tax payment of 38.99 crore, according to information provided in the company’s filing with the Bombay Stock Exchange (BSE).

According to the company’s BSE filing, the notice was issued under Section 74(5) of the Central Goods and Services Tax Act of 2017, which accuses the recipient of failing to pay a tax demand.

The company’s shares on the Bombay Stock Exchange (BSE) fell 2.11% on Monday, ending the day at 582.55 rupees per share.

Due to the company’s failure to satisfy its GST liability on the premiums received as a follower insurer within a coinsurance arrangement spanning from July 2017 to March 2023, the DGGI issued the tax demand.

Within the time frame allotted, Star Health and Allied Insurance Company plans to respond to the GST show cause notice in a suitable manner. The value of the company’s shares has decreased 19.12% over the past year and by 0.63% so far this year.

The private sector health insurance company received a notice in August from the Chennai-based GST department requesting a tax payment of 104 crore.

The GST department discovered some inconsistencies in the 2019–2020 statutory returns (GSTR1, GSTR2A, etc.). According to Star Health’s filing, the GST department had discovered inconsistencies related to output and input mismatches as well as variations in ineligible tax credits (ITC).

Reliance General Insurance Company (RGIC) recently received numerous show cause notices for GST (Goods and Services Tax) liabilities totalling Rs.922.58 crore. The DGGI had issued numerous notices to the insurance company. One of them is related to the GST of Rs.478.84 billion. The notice mentioned paying taxes on the re-insurance commissions that were incurred as a result of the re-insurance services that were ceded to various Indian and foreign entities.