Star Health and Allied Insurance Co Ltd has received 25 tax demand orders from various Goods & Services Tax (GST) and Central Excise authorities across six states, totalling approximately Rs 49 crore, including penalties. The alleged violations include non-payment of GST on coinsurance transactions, non-disclosure of such transactions in statutory returns, and failure to issue invoices for coinsurance services.
The tax demands were issued by authorities in Haryana, Delhi, Maharashtra, Tamil Nadu, Telangana, and Karnataka. The majority of the demands were from Maharashtra, with five orders worth Rs 19.4 crore. The Haryana office received five orders worth Rs 4.9 crore, while the Delhi office received four orders worth Rs 4.7 crore. The company’s Tamil Nadu office received five orders worth Rs 16.2 crore, and its Telangana office received five orders worth Rs 3.8 crore. The Karnataka office received a single order worth Rs 12.8 lakh.
The company plans to challenge the tax demands by filing an appeal or writ petition with the appropriate authorities based on legal counsel’s advice. This move is a response to the alleged non-compliance with tax laws, which the authorities claim has resulted in the tax demands.