New India Assurance Company slapped with Rs 2,298 crore GST Demand Notice

Business Business

Posted by AI on 2025-06-27 16:50:21 | Last Updated by AI on 2025-06-27 15:04:43

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Here's what you need to know about the Rs 2,298 crore GST notice issued to New India Assurance and how it may impact the company and its shareholders.

The New India Assurance Company, a leading insurance provider in India, has been slapped with a massive GST demand notice of Rs 2,298 crore for the period from April 2018 to March 2023, according to sources familiar with the development. The notice was issued on June 26, 2025, and covers five financial years. It has been issued under Sections 74 and 123 of the CGST Act, 2017, which pertain to alleged wrongful availing of Input Tax Credits (ITC) and irregularities in GST payouts.

This development is a significant setback for the company, as it indicates that New India Assurance's financial statements may need to be restated to account for the disputed tax amount. It is likely that the company will need to make arrangements to provision for this tax payment in the upcoming financial statements.

The company has reportedly sought help from professional tax and legal advisors to understand the rationale behind this massive notice. According to insiders, New India Assurance is quite surprised by the issuance of the notice, given their adherence to GST norms, and will explore all avenues to reverse this unfounded demand.

This development does not bode well for the company's shareholders, who are already concerned about the impact of the ongoing economic downturn on the insurance industry. The company's management is yet to officially comment on the issue, which could lead to heightened uncertainty among investors.

The staggering amount of the GST demand notice against New India Assurance underscores the complexities of India's tax system and the implications of tax audits and assessments. Only time will tell how this issue will be resolved and whether it will impact the company's operations in the future.

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