Bajaj Allianz General Insurance Co. said on Tuesday it received a goods and services tax demand notice for Rs 1,010 crore for alleged non-payment of GST on the co-insurance and re-insurance premiums.
The tax demand was sent by the Directorate General of GST Intelligence on Sept. 29.
The show cause-cum-demand notice pertains to non-payment of GST on the co-insurance premium and on reinsurance commission-accepted premiums ceded to various Indian and foreign reinsurance companies from July 2017 to March 2022, according to an exchange filing.
Under Section 73(1) of the CGST Act, authorities can send a show cause notice for taxes not paid or input tax credit wrongly availed of or utilised for any reason other than fraud or willful-misstatement.
The company said it will be filing an appropriate response to the GST demand notice within the prescribed timelines upon advice from its tax advisors. "The Show Cause Cum Demand Notice refers to the two matters that are industry wide issues."
On Tuesday, carmaker Maruti Suzuki India Ltd. said it received a Rs 2,160-crore draft assessment order from the Income Tax authority. The draft assessment order was received for FY 2019–20, "wherein certain additions/disallowances amounting to Rs 21,597 million with respect to returned income have been proposed".
Other Major GST Demands
In September, Delta Corp., India's largest casino operator, and its subsidiaries received a GST demand notice of Rs 16,821 crore. The demand, including interest and penalty, for the period from July 2017 to March 2022 is based on the gross bet value of all games played at the casinos during the relevant period.
Online fantasy sports platform Dream 11 moved the Bombay High Court against a GST demand of Rs 1,222.7 crore for FY18 and FY19. The tax demand sought to recover GST on the premise that services supplied by the platform are in the nature of gambling, which attracts a GST of 28% on the full face value of the deposited amount.
In August, ICICI Lombard General Insurance Co. received a show cause notice from GST authorities with a demand of Rs 273 crore.
The company had said the matter relates to an industry-wide issue on the applicability of GST on salvage adjusted and ineligible input tax credit, on motor claims settled.
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