‘The company has received a show cause cum demand notice from the Directorate General of GST Intelligence, Mumbai zonal unit under Section 74(5) of the Central Goods and Services Tax Act, 2017 (“the Act”), October 6, 2023 alleging a tax demand of Rs 38,99,77,849,’ the company said in an exchange filing.
The alleged demand and the impugned show cause cum demand notice pertains to non-payment of GST liability on the premium received by the company as a follower insurer under a coinsurance arrangement during the period July 2017 to March 2023, the filing added.
The show cause cum demand notice refers to matters relating to industry wide issues and based on the advice of its tax advisors, the Company will be filing appropriate response to the said notice within the prescribed timelines, the filing further added.
