Daijiworld Media Network - Mumbai
Mumbai, Mar 23: Star Health and Allied Insurance Company Limited has been served 25 tax demand notices by the Goods and Services Tax (GST) authorities across various states, with a total liability, including penalties, amounting to Rs 49 crore.
The tax notices have been issued to the company’s zonal offices in Haryana, Delhi, Maharashtra, Tamil Nadu, Telangana, and Karnataka. Authorities have alleged that the company failed to pay GST on certain transactions related to coinsurance, along with other compliance lapses.
The alleged violations include non-payment of GST on coinsurance transactions where Star Health acted as a follower, non-disclosure of such transactions in statutory filings, and failure to issue invoices for these services, as per an exchange filing.
In Haryana, Star Health received five tax demand orders worth Rs 4.9 crore, issued by the Additional Commissioner of GST and Central Excise in Gurugram. The Delhi office has been served four orders totaling Rs 4.7 crore, while Maharashtra’s zonal office faces the highest tax demand of Rs 19.4 crore through five orders issued by GST authorities in Mumbai East, Andheri East, and Mumbai South-West.
Tamil Nadu’s Chennai North GST office has issued five orders demanding Rs 16.2 crore. In Telangana, five tax notices have been served, amounting to Rs 3.8 crore. Meanwhile, the Karnataka office has received a single order demanding Rs 12.8 lakh.
Star Health has stated that it will challenge these tax demands by filing an appeal or a writ petition based on legal counsel’s advice. The company is taking appropriate legal steps to address the matter.
Separately, Star Health recently announced the expansion of its Home Health Care services to 100 locations across India. Launched in July 2023, this initiative now provides cashless medical care to 85% of the company’s customers, delivering doorstep healthcare services.
With these legal proceedings underway, Star Health remains focused on its core mission of providing quality healthcare services while addressing regulatory challenges in compliance with tax laws.