Daijiworld Media Network - New Delhi

New Delhi, Sep 30: State-run insurer New India Assurance Company Limited has received a Goods and Services Tax (GST) demand notice worth Rs 2,379 crore, the company disclosed in a stock exchange filing on Tuesday. The notice was issued by the Additional Commissioner of Central GST, Palghar Commissionerate, under various rules of the CGST/MHGST Act, 2017.

The tax demand relates to alleged non-payment of GST on two key revenue streams: premiums received as a follower in co-insurance arrangements and commission earned from reinsurance premiums ceded to other insurance companies.

According to the order dated September 29, 2025, authorities claim that New India Assurance failed to pay GST on premiums it received from the lead insurer in co-insurance deals. Additionally, it allegedly did not discharge GST liability on the reinsurance commission income.

Despite the scale of the demand, the company asserted that the notice will not impact its financial or operational activities, citing legal clarity on the matter and advice from its tax consultants. It referred to a prior clarification from the Central Board of Indirect Taxes and Customs (CBIC) that it believes supports its stance.

New India Assurance stated it has a strong case on merits and plans to respond within the prescribed timeline. “Appropriate action will be taken before the concerned authorities,” the company noted.

On the market front, shares of New India Assurance closed 0.55% higher at Rs 189.10 on the NSE on Tuesday, even as the broader Nifty 50 index slipped 0.1%. The insurer’s stock, however, remains under pressure — down nearly 18% over the past year, and 6.6% lower in 2025 so far.