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HDFC Life gets Rs 942-crore GST demand notice

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.

 

HDFC Life Insurance on Friday said it has received a demand notice of more than Rs 942 crore for non-payment of GST. The matter relates to the claiming of input tax credit against the supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) believes are ineligible for such claims, it said.

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.

On June 20, HDFC Life said that the Competition Commission of India has approved HDFC Ltd — one of the promoters of the company — to increase its stake in HDFC Life to more than 50 percent.  In a filing on Friday, HDFC Life said the Insurance Regulatory and Development Authority of India (IRDAI) has granted its approval for transfer of shares of HDFC Life, from HDFC Ltd to HDFC Bank.

“We also wish to inform that IRDAI vide its said letter has also granted its approval for HDFC Limited to acquire additional shares in HDFC Life so as to hold more that 50% of its total share capital,” HDFC Life said.

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