The New India Assurance Company Limited has received a Show Cause cum Demand Notice Ref. No. DGGI/MZU/I&IS'C/12(3)13/2023/PTI11/8116-8130 dated August 1, 2024 under Section 74(1) of the CGST ACT 2017, MGST ACT, 2017, Section 20 of IGST, ACT 2017 from Directorate General of Goods & Service Tax Intelligence, Mumbai Zonal Unit, on August 05, 2024 at 13.15 hrs.

alleging a tax demand of IGST INR 8,494,523,896/-. The Show Cause Notice states that the Company has not paid IGST on the supply of Group Health services to Units located in Special Economic Zone during the period July 01, 2017 to March 31, 2024 which were actually consumed by the employees and the family members of the employees and not by the SEZ Units. The demand raised by the DGGI is IGST INR 8,494,523,896/- plus the applicable interest and penalty.

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 Show Cause Cum Demand Notice within the prescribed timelines. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: IGST demand of INR 8,494,523,896/- plus interest under Section 74(1) of the CGST Act, 2017, MGST Act 2017 and Section 20 of IGST Act 2017 would be appropriately assessed for disclosure as Contingent liability in the financial statements of the Company. Based on the developments in the Industry, the company would be deciding further course of action for the said order within the prescribed timelines.