Wednesday, July 24, 2024

Bajaj Allianz gets Rs 1,010 crore GST demand notice

Bajaj Allianz General Insurance Company Limited (BAGIC) has received a show-cause notice from the Directorate General of GST Intelligence alleging tax demand of Rs 1010 crore.

Bajaj Finserv said that Bajaj Allianz General Insurance Company, an unlisted material subsidiary of the company, has received a show-cause cum demand notice from the Directorate General of GST Intelligence, Pune Zonal Unit, under Section 73(1) of the Central Goods and Services Tax Act, 2017 (the Act) on 29 September alleging a tax demand of Rs 1010,05,80,540.

“The alleged demand and the impugned show-cause cum demand notice pertains to non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on re-insurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022,” the company said.

The show-cause cum demand notice refers to the two matters that are industry-wide issues and based on the advice of its tax advisors, BAGIC will be filing appropriate response to the said notice within the prescribed timelines.

Earlier, ICICI Lombard had said the company has received a show-cause cum demand notice from the Directorate General of GST Intelligence, Pune Zonal Unit, under Section 73(1) of the Central Goods and Services Tax Act, 2017 (the Act), on September 27, 2023 alleging a tax demand of Rs 1,728.86 crore.

The alleged demand and the impugned show-cause cum demand notice pertains to non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on re-insurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022, ICICI Lombard had said.

The show-cause cum demand notice refers to matters relating to industry wide issues and based on the advice of its tax advisors, the company will be filing appropriate response to the said botice within the prescribed timelines, it had said.

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