Mumbai, January 31, 2025 – General Insurance Corporation of India (NSE: GICRE, BSE: 540755) has disclosed that it has received a tax demand order amounting to ₹1,384.66 crore from the Additional Commissioner, CGST & Central Excise, Mumbai South Commissionerate. The demand includes interest and penalty components.
Key Details of the Order
- Issuing Authority: Additional Commissioner, CGST & Central Excise, Mumbai South.
- Tax Demand: ₹1,384.66 crore(inclusive of interest and penalty).
- CGST: ₹455.31 crore
- SGST: ₹391.33 crore
- IGST: ₹537.99 crore
- Legal Basis: The demand is raised under Section 74 of the CGST Act, 2017, covering the period July 2017 – March 2019 and April 2020 – March 2021.
- Initial Demand: ₹11,122.84 crore, of which ₹9,738.18 crore has been dropped.
- Alleged Violations:
- Short payment of tax under the CGST Act for FY 2017-18: ₹1,376.31 crore.
- Short payment for FY 2017-18: ₹1 lakh.
- Non-reversal of Input Tax Credit (ITC): ₹8.24 crore.
Company's Stance and Impact
- GIC Re has clarified that there is no material impact on its financials, operations, or business activities due to this order.
- The company intends to appeal against the tax demand.
Investors and stakeholders will closely watch GIC Re's next steps as it navigates the legal proceedings regarding this demand.