New Delhi, Sep 30 (IANS) The New India Assurance Company Limited on Tuesday said that it has received a Goods and Services Tax (GST) demand notice of Rs 2,379 crore.
The order was issued by the Additional Commissioner of Central GST, Palghar Commissionerate, the company informed in a stock exchange filing.
“This is in reference to above, we would like to inform that the company has received order in original in form DRC-07 vide order dated 29/09/2025 under Rules 100(1), 100 (2), 100 (3) & 142 (5) of the CGST/MHGST ACT 2017 from Additional Commissioner CGST & Central Excise Palghar Commissionerate,” the company added in its filing.
According to the notice, the demand was raised for not paying GST on premiums received as a follower in coinsurance business and for not paying GST on commission earned from reinsurance premiums paid to reinsurance companies.
“The Order states that NIA had failed to discharge the appropriate GST on the amount of premium received by them from the respective ‘Leader’ in co-insurance business and NIA was also not discharging any GST liability on ‘reinsurance commission’ earned on the reinsurance premium ceded,” the firm added.
The insurance company, however, said that the order will not affect its financial or operational activities.
It cited a clarification issued by the Central Board of Indirect Taxes and Customs (CBIC) and the advice of its tax consultants as the basis for having a “strong case to defend on merits.”
The company added that it will take appropriate action within the prescribed timelines and file its response before the authorities.
On Tuesday, shares of New India Assurance ended 0.55 per cent higher at Rs 189.10 apiece on the National Stock Exchange (NSE), even as the benchmark Nifty fell 0.1 per cent.
The stock has declined 17.94 per cent over the past year and is down 6.63 per cent so far in 2025.
–IANS
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