New India Assurance Gets Show Cause Notice For Rs 2,298-Crore GST Demand
New India Assurance said there is no impact on the financial, operational, or other activities of the company pursuant to the receipt of the notice.
Government-owned The New India Assurance Co. on Thursday received a show cause notice for a GST demand amounting to Rs 2,298 crore for the period between April 2018 and March 2023.
The notice was sent by the office of the Additional Commissioner, South Mumbai. The show cause notice pertains to Sections 74 and 123 of the Central Goods and Services Tax Act, 2017.
The GST authorities have sought payments/clarifications on tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised because of fraud or any willful misstatement or suppression of facts. Section 123 outlines failure to furnish information return under section 150 or failure to do so within the period specified in the notice.
New India Assurance said there is no impact on the financial, operational, or other activities of the company pursuant to the receipt of the notice.
"Based on the advice of our tax consultants, the company is in the process of filing a detailed reply highlighting the contentions of the Company with the Adjudicating Authority within the prescribed timelines," the company said in a stock exchange filing.
Shares of New India Assurance settled 2.34% lower at Rs 185.8 apiece, ahead of the disclosure, compared to a 1.2% advance in the benchmark Sensex.
On Wednesday, Tata Steel Ltd. received a demand and show-cause notice from the Office of the Jamshedpur Central Goods and Services Tax & Central Excise commissioner in connection with irregular availing of input tax credit worth Rs 890.5 crore.
