HDFC Life gets ₹Rs 942-crore GST demand notice

HDFC Life Insurance said on Friday that it had received a demand notice of more than Rs 942 crore due to non-payment of GST.

The matter relates to a claim for input tax deduction for the supply of services, which the Directorate General of Tax Intelligence for Goods and Services (DGGI) believes is not eligible for such claims, she said.

“HDFC Life Assurance has received a Notice of Demand from DGGI, Mumbai Region Unit requesting the Company to explain why it has not claimed taxation of €942,18,46,028 in respect of the period from July 2017 to FY2022 from the Company,” HDFC said. Life in an organizational file.

HDFC Life reported that the Input Tax Credit (ITC) issue is an industry-wide issue, and said the company will take appropriate steps in a timely manner to respond to the Notice of Showing Cause and contest the matter.

The private sector insurer added, “It is worth noting that Rs 250 crore has been lodged under protest with the Authority (DGGI) in this matter in the past.”

On June 20, HDFC Life said the The Competition Commission of India has approved HDFC Ltd – one of the promoters of the company – to increase its stake in HDFC Life to more than 50 per cent.

In a statement on Friday, HDFC Life said the Insurance Regulatory and Development Authority of India (IRDAI) has given its approval to transfer shares of HDFC Life, from HDFC Ltd to HDFC Bank.

“We would also like to inform that IRDAI via its said letter has given its approval to HDFC Limited to acquire additional shares in HDFC Life in order to retain more than 50% of its total share capital,” said HDFC Life.