Chennai, February 28, 2025 – Star Health and Allied Insurance Company Limited (NSE: STARHEALTH, BSE: 543412) has disclosed the receipt of an order from the Office of the Sales Tax Officer Class-II Delhi, imposing a penalty of ₹10,71,087 under Section 73 of the Central Goods and Services Tax Act, 2017.
The penalty pertains to the financial year April 2020 – March 2021 and has been levied due to a GST demand arising from short payment of outward liability and excess Input Tax Credit (ITC) claimed. The order was received by the company on February 27, 2025, at 17:30 hours.
Company’s Response & Legal Action
Star Health has stated that it intends to challenge the order. Based on legal counsel’s advice, the company plans to file an appeal or writ petition with the appropriate authorities to contest the penalty.Despite the penalty order, the company does not anticipate any financial or operational impact from this development. It maintains that it has a strong case based on merits to successfully defend itself against the claims.
Investor Implications
While the company reassures stakeholders that there will be no immediate financial or operational impact, the legal proceedings may take time to resolve. Investors may monitor further regulatory developments for any potential implications on compliance and tax-related liabilities.For further updates, stay tuned to Star Health’s official filings.