Star Health Insurance gets GST Show Cause Notice of Rs.66.7 Crore

Star Health and Allied Insurance Company Limited said on Tuesday that the GST Department has issued a new show cause notice of Rs.66.7 crore.

In a regulatory filing, the standalone insurer stated that it received two orders from the GST authorities in Tamil Nadu for the years 2018-19 and 2019-20, totalling Rs.17.9 crore and approximately Rs.103.7 crore, respectively, in which the authorities disputed the company’s input tax credit (lTC).

An appeal was filed with the commissioner against the order amounting to Rs.17.9 crore and the hearing is in progress.

The company filed a writ appeal with the Madras High Court challenging the order, which totalled Rs.103.7 crore, and the Court overruled the order and directed the GST department to issue a new order, it added.

The government issued a fresh show cause notice, calculating the amount owing to be Rs.66.7 crore, to which the corporation responded. Star Health’s legal counsel informed it that liability may not arise, according to the filing with the stock exchange.

Meanwhile, the business recorded a 16.4% increase in Gross Written Premium (GWP) at Rs.3,605.8 crore for the quarter ended December 31, 2023, compared to Rs.3,096.7 crore in the same quarter last year.

It posted a profit after tax (PAT) of Rs.289.5 crore for the quarter ended December 31, 2023, a 37.6% rise from Rs.210.5 crore in Q3 of FY23.