HDFC Life Insurance faces Rs 942 Crore GST Demand Notice



Quick Summary
HDFC Life Insurance has been issued a demand notice for over Rs 942 crore in Goods and Services Tax (GST). The Directorate of GST Intelligence alleges that the company has claimed input tax credit on ineligible services between July 2017 and FY 2022. HDFC Life stated that this is an industry-wide issue and that they will contest the demand, having previously deposited Rs 250 crore under protest.

HDFC Life Insurance on Friday said it has received a demand notice of more than Rs 942 crore for non-payment of GST.

The matter relates to the claiming of input tax credit against supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) believes are ineligible for such claims, it said.

"HDFC Life Insurance Company has received a show cause cum demand notice from the Directorate General of GST Intelligence, Mumbai Zonal Unit asking the Company to show cause why a tax of Rs 942,18,46,028 pertaining to the period July 2017 to FY 2022, should not be demanded from the Company," HDFC Life said in a regulatory filing.

Stating that the input tax credit (ITC) case is an industry-wide issue, HDFC Life said the company will be taking appropriate steps in due course to reply to the show cause notice and contest the matter.

HDFC Life Insurance Rs 942 Cr GST Demand

"It may be noted that Rs 250 crore has been deposited under protest with the authority (DGGI) in this matter in the past," the private sector insurer added.

On June 20, HDFC Life had said that the Competition Commission of India has approved HDFC Ltd - one of the promoters of the company - to increase its stake in HDFC Life to more than 50 percent.

In a filing on Friday, HDFC Life said the Insurance Regulatory and Development Authority of India (IRDAI) has granted its approval for transfer of shares of HDFC Life, from HDFC Ltd to HDFC Bank.

"We also wish to inform that IRDAI vide its said letter has also granted its approval for HDFC Limited to acquire additional shares in HDFC Life so as to hold more that 50% of its total share capital," HDFC Life said.

FAQ :

HDFC Life Insurance has received a demand notice amounting to Rs 942,18,46,028, which is over Rs 942 crore.

The demand notice is related to the claiming of input tax credit (ITC) against the supply of services, which the Directorate of GST Intelligence believes are ineligible for such claims.

The notice pertains to the period from July 2017 to FY 2022.

Yes, HDFC Life Insurance has deposited Rs 250 crore under protest with the authority in this matter.

HDFC Life Insurance considers this an industry-wide issue and plans to take appropriate steps to reply to the notice and contest the matter.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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