HDFC Life Insurance share price declined over a percent on Monday after the company said it has received a demand notice of more than Rs.942 crore for non-payment of GST. The stock price fell as much as 1.62% to Rs.626.95 apiece on the BSE.
As per the company, 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.
“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 on Friday.
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.
“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.
Earlier on June 20, HDFC had received approval from the Competition Commission of India to increase its stake in HDFC Life Insurance to more than 50%.
Read more: livemint
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