HDFC Life Receives GST Orders; Plans to Appeal

Mumbai, February 4, 2025 – HDFC Life Insurance Company Limited (NSE: HDFCLIFE, BSE: 540777) announced the receipt of GST orders from tax authorities concerning erstwhile Exide Life Insurance Company Limited. The company has confirmed that these orders will not have a material impact on its financial operations and will be contested through appeals.

Details of the GST Orders​

HDFC Life received two separate GST orders on February 3, 2025:

1. Patna Central Division, Bihar (April 1, 2020 – March 31, 2021)
   
   • Tax Demand: ₹20.86 lakh
   • Penalty: ₹2.13 lakh
   • Allegations: Excess availment of input tax credit (ITC) due to mismatches in GSTR-3B vs GSTR-2A and ineligible ITC claims, along with a short reversal of proportionate ITC on common services.
   • Company Response: The order is appealable, and HDFC Life plans to contest it before the appellate authority.
2. Bengaluru East Commissionerate (July 1, 2017 – September 30, 2022)
   
   • Tax Demand: ₹56.56 crore
   • Penalty: ₹56.56 crore
   • Allegations: The adjudicating authority believes that the ITC claimed on certain service supplies was ineligible.
   • Company Response: HDFC Life has stated that it will appeal this order within the prescribed timeframe.

Company’s Position​

In a regulatory filing, Narendra Gangan, General Counsel, Chief Compliance Officer & Company Secretary of HDFC Life, assured investors that the company does not foresee any adverse financial impact from these orders. The company remains confident that the appeals will be handled in due course.

Conclusion​

While the tax demand from Bengaluru authorities is significantly higher, HDFC Life’s assurance of no financial impact indicates confidence in its legal position. Investors will watch closely for updates on the appeals process and any further clarifications from regulatory authorities.