Canara HSBC Life Insurance Company Limited has received a GST demand order totaling ₹4,80,38,171 from tax authorities in Lucknow, the company disclosed in a regulatory filing on 31st March 2026. The order was issued under Section 74 of the UPGST and CGST Act, 2017, relating to alleged Input Tax Credit (ITC) violations for Financial Year 2019-20.

Order Details and Timeline

The demand order was received on 30th March 2026 from the Office of the Deputy Commissioner, Lucknow Sector-20, Lucknow (C), Lucknow II, Uttar Pradesh. This order follows a Show Cause Notice (SCN) that was issued on 25th April 2025.

Financial Impact Breakdown

The total demand of ₹4,80,38,171 comprises multiple components related to alleged GST violations:

Alleged Violations

The tax authorities have raised the demand based on two primary allegations:

• ITC Compliance Issues: The claimed Input Tax Credit allegedly does not comply with sections 16 and 17 of the CGST Act, 2017
• Excess ITC Claims: The company allegedly claimed excess ITC in GST return (GSTR-3B) compared to the ITC reflected on the GST portal (Table 8A of GSTR-9)

Company's Response Strategy

Canara HSBC Life Insurance has indicated its intention to challenge the order through proper legal channels. The company stated it will file an appeal before the Competent Authority or Appellate Authority against the said order in accordance with applicable provisions under the Goods and Services Tax Act.

Based on the company's assessment, the demand is not maintainable, and management does not envisage any relevant impact on the company's financials, operations, or other activities. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding this regulatory development.

Canara HSBC Life Insurance Company Limited has successfully concluded its postal ballot process, with shareholders approving all three resolutions through remote e-voting. The results were announced on March 23, 2026, following the completion of voting that took place from February 18, 2026, to March 19, 2026.

Postal Ballot Process and Timeline

The postal ballot was conducted in accordance with Section 108 and Section 110 of the Companies Act, 2013, and Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The voting rights were determined based on the cut-off date of February 13, 2026. KFin Technologies Limited served as the service provider for the remote e-voting facility, with the platform being blocked after 5:00 PM IST on March 19, 2026.

Resolution Results Overview

All three resolutions presented to shareholders received approval with requisite majority. The first resolution, requiring special resolution status, involved amending the Articles of Association to provide nomination rights to Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. The remaining two ordinary resolutions pertained to approving material related party transactions for financial year 2025-26.

Resolution 1: Amendment of Articles of Association

The special resolution for amending Articles of Association achieved significant approval across all shareholder categories:

Resolution 2 & 3: Related Party Transactions

Both ordinary resolutions for approving material related party transactions with Canara Bank and HSBC respectively received identical voting patterns. In accordance with Regulation 23(4) of SEBI LODR, related parties abstained from voting on these resolutions.

Key Amendments to Articles of Association

Pursuant to Regulation 30 of SEBI LODR Regulations, 2015, the company has disclosed detailed amendments to its Articles of Association. The amendments establish clear nomination rights for both promoter entities and modify board composition requirements.

Board Composition and Nomination Rights

The amended Articles introduce specific nomination entitlements for the promoter entities:

The amendments also include provisions for dynamic adjustment of nomination rights based on relative shareholding between the two promoter entities. If INAH's shareholding exceeds that of Canara Bank, the nomination rights reverse, with INAH entitled to nominate three directors and assume chairman election rights.

Scrutinizer Report and Compliance

Shirin Bhatt, Practicing Company Secretary (Membership No. F8273), was appointed as Scrutinizer by the Board of Directors on February 9, 2026. The scrutinizer's report confirmed that all resolutions were passed with requisite majority, and the voting process was conducted in compliance with applicable regulations. The unblocking of votes was witnessed by two independent witnesses: Mr. Rithik Kesarwani and Mr. Tanmay Saxena.

Shareholder Participation Analysis

The postal ballot witnessed participation from 364 shareholders across different categories, with a total of 950,000,000 shares representing the company's share capital. The voting turnout varied significantly across resolutions, with the Articles of Association amendment receiving broader participation at 95.33% of outstanding shares, while the related party transaction resolutions saw 20.33% participation due to promoter abstention.

The company has made the detailed voting results and scrutinizer's report available on its website at www.canarahsbclife.com , ensuring transparency and accessibility for all stakeholders. The formal disclosure was submitted to both NSE and BSE under the company's listing obligations, with Company Secretary Vatsala Sameer signing the compliance documents.