"The Company has received a Show Cause Cum Demand Notice from the Directorate General of GST Intelligence, Mumbai Zonal Unit under Section 74(5) of the Central Goods and Services Tax Act, 2017 ("the Act"), October 6, 2023 alleging a tax demand of ₹ 38,99,77,849," said the company in its BSE filing.

The company shares closed 2.11% lower at ₹582.55 per share on BSE on Monday. The tax demand by the DGGI was made because of the "non-payment of GST liability on the premium received by the company as a follower Insurer under a coinsurance arrangement during the period July 2017 to March 2023."

The company will file an appropriate response to the GST show cause notice within the prescribed timeline, stated the filing. The company's share value has declined by 0.63 per cent YTD and by 19.12 per cent in last one year.

In August, the private sector health insurance firm had received a notice from GST department in Chennai to pay ₹104 crore tax for certain discrepancies in the returned filed during the year 2019-20.

The GST department had found certain discrepancies in the statutory returns like GSTR1, GSTR2A, etc, filed for the year 2019-2020. The GST department had found discrepancies associated to output mismatch, input mismatch, and variation in ineligible tax credits (ITC), Star Health said in its filing.

Days ago, Reliance General Insurcance Company (RGIC) receoved multiple show cause notices for Goods and Services Tax (GST) dues amounting to ₹922.58 crore. The insurance firm had received multiple notices by the DGGI. Out of them, one pertained to the GST of ₹478.84 crore. The notice mentioned tax payment on re-insurance commission  booked through the re-insurance services ceded to various Indian and foreign entities.