General Insurance Corporation Hit With ₹138 Cr GST Liability

General Insurance Corporation Hit with ₹138 Cr GST Liability

General Insurance Corporation of India (GIC) has received a tax demand order from the Additional Commissioner, CGST & Central Excise, Mumbai South Commissionerate. The order demands a tax liability totaling ₹138,46,57,100, which includes interest and penalties.

The breakdown of the demand is as follows: CGST ₹45,53,14,033, SGST ₹39,13,33,028, and IGST ₹53,79,90,039, under Section 74 of the CGST Act, 2017. The demand covers the period from July 2017 to March 2019 and April 2020 to March 2021, in accordance with the IGST Act, 2017, and the Maharashtra Goods and Service Tax Act, 2017. The demand relates to an alleged short payment of tax under the CGST Act for FY 2017-18 amounting to ₹137,63,15,036, a short payment for FY 2017-18 of ₹100,000, and non-reversal of Input Tax Credit (ITC) of ₹82,42,064.

Notably, the GST authority has reduced the demand by ₹973,81,84,098 from an initial figure of ₹1112,28,41,198. GIC received the order on January 31, 2025, and intends to challenge the order before the appropriate authority. The Corporation has also stated its intention to file an appeal against the demand, as per its exchange filing.