As per the company, the matter relates to the claiming of input tax credit against supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) believes are ineligible for such claims.
As per the company, the matter relates to the claiming of input tax credit against supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) believes are ineligible for such claims.
PremiumHDFC Life Insurance share price declined over a percent on Monday after the company said it has received a demand notice of more than ₹942 crore for non-payment of GST. The stock price fell as much as 1.62% to ₹626.95 apiece on the BSE.
As per the company, the matter relates to the claiming of input tax credit against supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) believes are ineligible for such claims.
"HDFC Life Insurance Company has received a show cause cum demand notice from the Directorate General of GST Intelligence, Mumbai Zonal Unit asking the Company to show cause why a tax of ₹942,18,46,028 pertaining to the period July 2017 to FY 2022, should not be demanded from the Company," HDFC Life said in a regulatory filing on Friday.
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Stating that the input tax credit (ITC) case is an industry-wide issue, HDFC Life said the company will be taking appropriate steps in due course to reply to the show cause notice and contest the matter.
"It may be noted that ₹250 crore has been deposited under protest with the authority (DGGI) in this matter in the past," the private sector insurer added.
Earlier on June 20, HDFC had received approval from the Competition Commission of India to increase its stake in HDFC Life Insurance to more than 50%.
Read here: CCI approves HDFC acquisition of more shares in HDFC ERGO
HDFC Life also said that the Insurance Regulatory and Development Authority of India (IRDAI) had granted its approval for transfer of shares of HDFC Life, from HDFC Ltd to HDFC Bank.
"We also wish to inform that IRDAI vide its said letter has also granted its approval for HDFC Limited to acquire additional shares in HDFC Life so as to hold more that 50% of its total share capital," HDFC Life said on Friday.
At 9:40 am, the shares of HDFC Life Insurance Company were trading 0.06% lower at ₹626.60 apiece on the BSE.
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Take the testUpdated: 26 Jun 2023, 09:42 AM IST