Gurugram: A tax dispute has emerged for Canara HSBC Life Insurance, with authorities raising significant GST claims, though the company is preparing to challenge the order.
The company received an order under Section 74 of the UPGST and CGST Act, 2017 from the Deputy Commissioner, Lucknow. The demand relates to the financial year 2019-20 and follows a show cause notice issued earlier in April 2025.
The total demand stands at Rs 4,80,38,171, comprising tax of Rs 1,50,82,434, interest of Rs 1,78,73,303, and penalty of Rs 1,50,82,434. As detailed in the annexure on page 2, the claims arise from discrepancies in input tax credit reporting and compliance.
Authorities have alleged that the input tax credit claimed by the company did not comply with Sections 16 and 17 of the CGST Act. Additionally, excess credit was reported in GST returns compared to figures reflected on the GST portal.
The company stated that it believes the demand is not maintainable and will file an appeal before the appropriate authority. It also indicated that no significant financial or operational impact is expected from the order.
The development highlights ongoing scrutiny around GST compliance and reporting standards in the financial services sector.
Disclaimer: This article is based solely on the company’s official filing and disclosure. Forward-looking statements, if any, are subject to risks and uncertainties that may cause actual outcomes to differ materially.
