Star Health gets GST Demand Notice of Rs.170 crore includes Penalty of Rs.8.7 crore:

Star Health gets GST Demand Notice of Rs.170 crore includes Penalty of Rs.8.7 crore Star Health and Allied Insurance Company Ltd stated on Thursday that it has received a tax demand notice for Rs.170 crore, as well as a penalty of Rs.8.7 crore, for failing to pay GST liability on re-insurance commissions earned by the business between April 2018 and March 2019. The company said in a regulatory filing, "The company received a demand order from the Office of the Deputy Commissioner (ST)-II, Large Taxpayers Unit, Chennai-35 on February 14, 2024, under Section 73 of the Central Goods and Services Tax Act, 2017, claiming a total demand of Rs.170,67,13,561 and imposing a penalty of Rs.8,67,25,664. The alleged demand and the impugned demand order relate to the company's failure to pay GST on re-insurance commissions received between April 2018 and March 2019." Star Health further indicated that based on the advice of its tax consultants, the business will file an "appropriate response or appeal to the said demand order within the prescribed timelines". According to the company, it has a strong case against the imposition of the demand, interest and penalty. However, it stated that the case's conclusion and its financial effects cannot be foreseen with certainty at this time. Earlier in January, the private health insurance reported a 37.6 percent year-on-year profit of Rs.289.6 crore for the quarter ended December. Gross written premium increased by 16.4 percent to Rs.3,605.8 crore in the third quarter, compared to Rs.3,096.7 crore the previous year. The net premium earned during the December quarter increased 7.1% YoY to Rs.3,151.9 crore.