GST: Bajaj Allianz gets Rs1,010 Crore Demand Notice
IANS 04 October 2023
Bajaj Allianz General Insurance Company Limited (BAGIC) has received a show-cause notice from the directorate general of GST intelligence alleging tax demand of Rs1,010 crore.
 
Bajaj Finserv said that Bajaj Allianz General Insurance Company, an unlisted material subsidiary of the company, has received a show-cause-cum-demand notice from the directorate general of GST intelligence, Pune zonal unit, under Section 73(1) of the Central Goods and Services Tax Act, 2017 (the Act) on 29 September alleging a tax demand of Rs1010,05,80,540.
 
“The alleged demand and the impugned show-cause-cum-demand notice pertains to non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on re-insurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022," the company said.
 
The show-cause-cum-demand notice refers to the two matters that are industry-wide issues and based on the advice of its tax advisers, BAGIC will be filing appropriate response to the said notice within the prescribed timelines.
 
Earlier, ICICI Lombard had said the company has received a show-cause-cum-demand notice from the directorate general of GST intelligence, Pune zonal unit, under Section 73(1) of the Central Goods and Services Tax Act, 2017 (the Act), on September 27, 2023 alleging a tax demand of Rs1,728.86 crore.
 
The alleged demand and the impugned show-cause-cum-demand notice pertains to non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on re-insurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022, ICICI Lombard had said.
 
The show-cause-cum-demand notice refers to matters relating to industry wide issues and based on the advice of its tax advisers, the company will be filing appropriate response to the said botice within the prescribed timelines, it had said.
 
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