GST Authorities Issue ₹2,298 Crore SCN to New India Assurance
The notice, issued by the Additional Commissioner, GST, Mumbai South, cites alleged tax shortfalls, wrongful input tax credit claims, and delayed return filings under Sections 74 and 123 of the GST Acts
State owned New India Assurance Company Ltd has come under the scanner of GST authorities, receiving a Show Cause Notice seeking ₹2,298.06 crore in taxes for the period spanning April 2018 to March 2023. According to the insurer’s regulatory filing on June 26, the notice was issued by the office of the Additional Commissioner, GST, Mumbai South. It cites alleged irregularities...
State owned New India Assurance Company Ltd has come under the scanner of GST authorities, receiving a Show Cause Notice seeking ₹2,298.06 crore in taxes for the period spanning April 2018 to March 2023.
According to the insurer’s regulatory filing on June 26, the notice was issued by the office of the Additional Commissioner, GST, Mumbai South. It cites alleged irregularities under Sections 74 and 123 of the Central and Maharashtra GST Acts, including non payment or short payment of tax, wrongful claim of input tax credit, and non submission of information returns within the prescribed time.
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Authorities have alleged that these discrepancies may involve elements such as fraud, willful misstatements, or suppression of facts, issues typically covered under Section 74(7) of the GST law. The notice was served through Form DRC 01, initiating proceedings to justify the proposed tax demand.
The insurer has maintained that it has a strong case and intends to respond with detailed representations. "Based on professional advice, a comprehensive reply is being prepared for submission within the timelines laid down by law,” the company said as reported by NDTV.
New India Assurance clarified that the notice does not affect its business operations or financial standing. The company added that it continues to comply with all applicable laws and will explore legal remedies as needed.
On the same day, shares of the company closed 2.34 percent lower at ₹185.80 on the BSE, even as the broader market moved higher as reported by CNBC.
This development adds to a growing list of GST related notices in recent times, reflecting intensified regulatory oversight in sectors like insurance and manufacturing.
On June 25, Tata Steel received a notice from the Jamshedpur GST office over an alleged wrongful claim of input tax credit worth ₹890.5 crore. The notice, dated June 13, relates to the period from FY 2018-19 to FY 2020-21 and cites violations under Sections 16 and 41 of the CGSTAct and related IGST provisions.
The company has been asked to respond within 30 days and appear before the tax authorities. Tata Steel said the notice is without merit and confirmed it will make the necessary submissions. It also clarified that the notice does not affect its financial or operational activities.
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