HDFC Life Receives GST Order from DGGI, No Material Financial Impact Expected

Mumbai, February 02, 2025 – HDFC Life Insurance Company Limited (NSE: HDFCLIFE, BSE: 540777) has disclosed the receipt of a Goods and Services Tax (GST) Order from the Additional Commissioner, CGST & Central Excise, Palghar Commissionerate, Maharashtra. This follows a show cause cum demand notice issued earlier by the Directorate General of GST Intelligence (DGGI), Mumbai Zonal Unit.

Key Details of the Order​

The order pertains to the period from July 1, 2017, to March 31, 2022, and confirms a tax demand of ₹942.18 crore along with a penalty of ₹942.31 crore, while no interest has been levied. This is in line with the show cause notice initially disclosed by the company on June 23, 2023.

Company’s Response & Financial Impact​

HDFC Life has stated that the order will not have any material adverse impact on its financial operations. The company intends to contest the order through an appeal before the Appellate Authority.

Regulatory Compliance & Next Steps​

The company is in compliance with SEBI’s Regulation 30 of Listing Obligations and Disclosure Requirements (LODR), 2015, ensuring transparency in regulatory disclosures. The appeal will be filed within the stipulated period.

Conclusion​

While the confirmation of the tax demand and penalty by the GST authorities is a significant regulatory development, HDFC Life has reassured stakeholders that there will be no immediate financial or operational impact. The market will be closely watching the progress of the appeal in the coming months.