HDFC Life Receives ₹102.51 Crore GST Order From Gujarat State Tax Authority

HDFC Life Insurance Company Limited (HDFC Life ) on Friday through an exchange filing announced that the company has received a GST order from the State Tax Officer -(2), Unit 8, Ahmedabad, Gujarat on April 4, 2024.

Nature of the order

The GST order pertains to actions taken by the State Tax Authority for the period from April 1, 2018, to March 31, 2019. The details of the order include a tax demand of Rs 51.23 crore interest amounting to Rs 46.16 crore, and a penalty if RS 5.12 crore.

The company through the regulatory filing said, "This order will have no adverse material impact on the financial operations of the Company and the same shall be further contested by the Company by way of an appeal before the Appellate Authority."

Allegations

The order alleges several violations, according to the exchange filing, which includes:

1. Short payment of GST on outward supply by treating the adjustments made to turnover in GSTR9C as a part of taxable turnover and GSTR-3B v/s. GSTR-9.

2. Excess availment of Input tax credit due to mismatch in GSTR3B vs GSTR2A.

3. Short reversal of proportionate Input tax credit towards exempt supplies.

Response from HDFC Life

HDFC Life has stated that it will contest the order by filling an appeal before the Appellate Authority within the specified period.

HDFC Life shares

The shares of HDFC Life on Friday at 12:57 pm IST were trading at Rs 623.35, up by 0.15 per cent.