GIC of India (GICRE) has reported a substantial decrease in its tax obligations, with a reduction of 562.4 million rupees in tax demand. This development comes as a positive financial update for the state-owned reinsurance company.

Tax Demand Reduction Details

The reduction in tax demand is a result of recent appeal orders received by GICRE from the Commissioner Appeals CGST & Central Excise, Mumbai. The company has disclosed two separate orders that have led to this significant decrease in tax liability:

1. First Order:

   • Original tax demand: 1,112.28 crore rupees
   • Revised demand after appeal: 138.47 crore rupees
   • Amount of demand dropped: 973.82 crore rupees

2. Second Order:

   • Original tax demand: 60.02 crore rupees
   • Revised demand after appeal: 3.79 crore rupees
   • Amount of demand dropped: 56.24 crore rupees

Financial Impact and Company's Response

Despite the substantial reduction in tax demand, GICRE has stated that there is no material impact on its financials, operations, or other activities due to these orders. However, the company has expressed its intention to file appeals against both demands at the GST tribunal after consulting with its GST consultants.

Regulatory Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, GICRE has made these disclosures to the stock exchanges. The company has provided detailed information as required under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024.

Nature of Tax Issues

The tax demands were related to:

• Alleged short payment of tax under the CGST Act 2017 for FY 2017-18
• Non-reversal of Input Tax Credit (ITC)
• Alleged contravention of Rule 42 reversal under CGST Act 2017 for FY 2017-18

Conclusion

While the reduction in tax demand represents a positive development for GICRE, the company maintains a cautious stance by planning to pursue further appeals. This approach underscores GICRE's commitment to addressing tax matters thoroughly and protecting its financial interests.

GIC of India , a leading reinsurance company, has announced a significant change in its leadership team. Ms. Jayashri Balkrishna has assumed the office of Executive Director at GIC of India, bringing a wealth of experience and expertise to the role.

A Seasoned Professional Takes the Helm

Ms. Balkrishna's appointment marks a new chapter for GIC of India, as she brings an impressive academic background and extensive industry experience to her new position. Her credentials include:

• Post-Graduate degree in Commerce from Mumbai University
• Fellow of the Insurance Institute of India (FIII)
• Associate of the Chartered Insurance Institute (ACII), London

Diverse Experience Within GIC of India

Throughout her tenure at GIC of India, Ms. Balkrishna has demonstrated her versatility and leadership across various critical functions:

• Investments operations and accounts
• Reinsurance operations, including claims management
• Audit department oversight
• Budgeting and forecasting
• Corporate communications
• Credit rating management
• Broker relationship management
• Investor relations

Recent Roles and Responsibilities

Prior to her appointment as Executive Director, Ms. Balkrishna served as the Chief Risk Officer (CRO) of the Corporation. In this role, she oversaw several key areas:

• Enterprise Risk Management
• Corporate Social Responsibility initiatives
• Investment Mid and Back Office operations
• Management of Investment Non-Performing Assets (NPAs)

Commitment to Transparency and Governance

In line with regulatory requirements, GIC of India has confirmed that Ms. Balkrishna is not related to any existing Directors of the Corporation. Furthermore, she has not been debarred from holding the office of Director by any SEBI Order or other authority, underscoring the company's commitment to good governance practices.

Stake in the Company

As of her appointment, Ms. Balkrishna holds 1,222 equity shares in GIC of India, aligning her interests with those of the company's shareholders.

The appointment of Ms. Jayashri Balkrishna as Executive Director signals GIC of India's continued focus on leveraging experienced leadership to drive its strategic objectives in the competitive reinsurance landscape. Her diverse skill set and deep understanding of the corporation's operations position her well to contribute to GIC of India's future growth and success.