The New India Assurance Company , a prominent player in the Indian insurance sector, has reported its premium collection figures for September, showcasing a modest growth in its business.

Premium Collection Highlights

The insurance giant has announced that its premium collection for September reached ₹32.52 billion, marking a 3.5% increase compared to the same period in the previous year. This growth indicates a steady performance in the company's core business activities.

Market Implications

The reported increase in premiums suggests that The New India Assurance Company has maintained its market position and potentially expanded its customer base. In the competitive insurance landscape, even modest growth can be seen as a positive indicator of the company's resilience and market strategy.

For investors and market analysts, this data provides insight into the company's operational performance and could be a factor in assessing its financial health and market competitiveness.

Looking Ahead

While the 3.5% growth is a positive sign, stakeholders may be keen to see how this performance fits into the company's broader financial picture and long-term growth strategies. Future reports on quarterly or annual results will likely provide a more comprehensive view of The New India Assurance Company's overall financial standing and market trajectory.

The New India Assurance Company , a prominent player in the Indian insurance sector, has received a significant tax demand from authorities related to Goods and Services Tax (GST) on co-insurance premiums. The company disclosed this development in a regulatory filing.

Tax Demand Details

The insurance giant has been served with a tax demand of ₹2,379.13 crore by the Additional Commissioner of CGST & Central Excise, Palghar Commissionerate. This demand stems from allegations that The New India Assurance Company failed to discharge appropriate GST on premium amounts received from 'Leaders' in co-insurance business operations.

Allegations and Scope

The order, numbered 10/PLG/CGST/ADC/VKA/DGGI/NEW INDIA/2025-26, outlines two main issues:

1. Non-payment of GST on premiums received as a follower in co-insurance business
2. Non-payment of GST on commission earned from reinsurance premiums ceded or paid to reinsurance companies

The demand includes both the tax amount and penalties under Section 73(9) of the CGST Act, 2017, and corresponding SGST Act, 2017, read with Section 20 of the IGST Act, 2017.

Company's Stance and Future Actions

The New India Assurance Company maintains a strong position regarding this tax demand. The company cites recent developments in GST regulations that support their stance:

• The 53rd GST Council meeting concluded that co-insurance premium and reinsurance commission transactions are to be classified as "No Supply" under Schedule III of the CGST Act, 2017.
• The Central Board of Indirect Taxes and Customs (CBIC) introduced these transactions as "No Supply" in Schedule III through Section 149 of the Finance Act.
• CBIC circular no. 244/01/2025-GST regularized GST demands on these transactions for the period July 1, 2017, to October 31, 2024, on an "As is where is" basis.

Based on these clarifications and advice from tax consultants, The New India Assurance Company believes it has a strong case to defend on merits. The company plans to initiate appropriate action against the order within prescribed timelines and will file a response highlighting their contentions with the appropriate authority.

Impact on Operations

The New India Assurance Company has stated that there is no impact on its financial, operational, or other activities pursuant to this order. The company views this as an industry-wide issue and is relying on the clarifications issued by the CBIC to support its position.

As the situation unfolds, stakeholders will be keenly watching how this tax demand is resolved and its potential implications for the insurance sector at large.