The New India Assurance Company , a prominent player in the Indian insurance sector, has received significant updates on multiple GST-related cases. The company disclosed these developments in regulatory filings under SEBI regulations.

Major Relief in Mumbai South Case

The insurance giant has received partial relief in a significant GST case from the Joint Commissioner CGST & Central Excise, Mumbai South. The company had originally faced a show cause notice for ₹2,298.07 crore for the period April 2018 to March 2023.

The adjudicating authority dropped a substantial portion of the original demand, confirming only ₹110.12 crore along with applicable interest and penalty. This represents a significant reduction from the initial demand.

Additional GST Demand from Delhi

In a separate case, the company has received another GST order from the Assistant Commissioner, New Delhi. This order pertains to the financial year April 2021 to March 2022.

Nature of Allegations

The GST demands stem from various compliance issues:

Mumbai South Case:

• Non-reversal of proportionate Input Tax Credit (ITC) under Rules 42/43

Delhi Case:

• Excess claim of ITC
• ITC to be reversed on non-business transactions and exempt supplies
• Under declaration of ineligible ITC
• ITC claimed from cancelled dealers, return defaulters and tax non-payers

Company's Response Strategy

Based on advice from tax consultants, The New India Assurance Company believes it has strong cases to defend on merits in both matters. The company is in the process of challenging both orders before the First Appellate Authority within prescribed timelines as per GST law provisions.

Financial Impact Assessment

The company has stated that there is no impact on its financial, operational, or other activities pursuant to these orders. The total confirmed demand across both cases stands at approximately ₹179 crore, significantly lower than the original demands faced by the company.

As these appeals progress through the GST appellate process, stakeholders will be monitoring the outcomes and their potential implications for the insurance sector's GST compliance practices.

The New India Assurance Company Limited (NIACL), a prominent player in the Indian insurance sector, has announced the receipt of a substantial income tax refund amounting to Rs. 249.79 crore. This development was disclosed by the company in a regulatory filing to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Refund Details

The refund pertains to the Assessment Year 2009-10 and includes an interest component of Rs. 8.89 crore. This significant financial inflow comes as a positive development for the state-owned insurer, potentially bolstering its financial position.

Regulatory Compliance

In adherence to the regulatory requirements set forth by the Securities and Exchange Board of India (SEBI), NIACL promptly informed the stock exchanges about this material development. The disclosure aligns with the company's commitment to transparency and compliance with listing obligations.

Company Background

The New India Assurance Company Limited, established in 1919, is a leading general insurance company in India. As a government undertaking, it plays a crucial role in the country's insurance landscape, offering a wide range of insurance products and services.

Market Implications

The substantial refund is likely to have a positive impact on the company's financials. Investors and market analysts will be keenly watching how this additional liquidity might influence NIACL's financial strategies and potential growth initiatives in the coming quarters.

The receipt of this significant tax refund underscores the importance of efficient tax management and the potential financial benefits that can accrue to companies through such processes. As the insurance sector continues to evolve in India, developments like these can play a crucial role in shaping the competitive landscape and financial health of major players like New India Assurance.