Bajaj Allianz General Insurance Company Ltd receives tax demand notice for 1010.05 crores

Bajaj Allianz General Insurance Company Limited ("BAGIC"), an unlisted material subsidiary of Bajaj Finserv Ltd, 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 2023 alleging a tax demand of Rs. 1010,05,80,540/-.

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 Show Cause Cum Demand Notice refers to the two matters that are industry wide issues and based on the advice of its tax advisors, BAGIC will be filing appropriate response to the said Show Cause Cum Demand Notice within the prescribed timelines.

Source : Equity Bulls

Keywords

BajajFinserv BajajAllianzGeneralInsuranceCompany TaxDemand GST