Star Health gets GST Demand of Rs.49 Crore from GST Authorities

Star Health and Allied Insurance Company Limited has received 25 tax demand orders from the Goods and Services Tax (GST) authorities in various states.

The total demand, including penalties, comes to Rs.49 crore. The tax notices have been issued to the company’s zonal offices in Haryana, Delhi, Maharashtra, Tamil Nadu, Telangana, and Karnataka.

Authorities suspect that the business neglected to pay GST on certain coinsurance transactions. The violations also include failing to disclose these transactions in statutory filings and failing to provide invoices for such services.

“The alleged violations include non-payment of GST on the transactions of coinsurance as follower; non-disclosure of coinsurance as follower transactions in the statutory returns filed from time to time; non-issuance of invoices for coinsurance as follower services,” the company said in the exchange filing.

In Haryana, Star Health’s office received five tax demand notices totalling Rs.4.9 crore. The Additional Commissioner of GST and Central Excise in Gurugram issued the orders.

Similarly, the company’s Delhi office has received four orders totalling Rs.4.7 crore. Maharashtra’s zonal office has received the largest tax demand of Rs.19.4 crore through five orders.

The GST authorities in Mumbai East, Andheri East, and Mumbai South-West issued these orders. In Tamil Nadu, the company received five orders for Rs.16.2 crore from the Chennai North GST office.

The Telangana office has also received five tax demand orders totalling Rs.3.8 crore. Meanwhile, the Karnataka office received a single order for Rs.12.8 lakh.

Star Health has announced that, based on legal advice, it will submit an appeal or writ petition to challenge these tax demands. The company will take proper legal action to resolve the situation.

Meanwhile, last month, the company revealed that it has expanded its Home Health Care services to 100 locations in India.

This initiative, which began in July 2023, now serves 85% of Star Health Insurance customers, delivering cashless medical care at their doorstep.