The first day of the new year 2025 started on a sour note for private sector insurer HDFC Life Insurance with Rs 270 crore GST demand order. The HDFC Life Insurance was served two separate demand notice of Rs 270.58 crore from the Maharashtra state GST in new year for alleged excess availment of input tax credit (ITC) under the reverse charge mechanism.
The orders pertain to the financial year from April 1, 2020, to March 31, 2021, and include a total tax demand of ₹152.87 crore and interest of ₹117.71 crore but no penalty has been imposed by the state GST Investigation Wing, Mumbai.
The allegations include the short reversal of proportionate input tax credit on common services attributable to exempted supplies and excess availment of input tax credit under the reverse charge mechanism.
HDFC Life stated that the orders will have no material adverse impact on its financial operations. The company intends to contest the orders through an appeal before the Appellate Authority within the stipulated period.
