Canara HSBC Life Insurance Faces ₹3.46 Cr GST Demand for FY 2021-22
Canara HSBC Life Insurance Company Limited has received a GST demand order of ₹3.46 crores from Uttar Pradesh tax authorities for FY 2021-22. The demand includes ₹1.85 crores in tax, ₹1.41 crores in interest, and ₹18.76 lakhs in penalties. The allegations involve improper ITC claims, unsubstantiated zero-rated supplies, and GST not charged on ULIP income. The company deems the demand unmaintainable and plans to appeal. It does not anticipate any significant financial impact.
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Canara HSBC Life Insurance Company Limited has informed stock exchanges about receiving a significant GST demand order from tax authorities in Uttar Pradesh. The regulatory disclosure was made pursuant to SEBI listing regulations.
GST Demand Details
The company received a GST demand order of ₹3.46 crores from UP authorities for FY 2021-22. The order covers tax, interest, and penalties.
| Component | Amount (₹) |
|---|---|
| Tax | 1,85,71,533 |
| Interest | 1,41,52,714 |
| Penalty | 18,76,678 |
| Total Demand | 3,46,00,925 |
Allegations and Violations
The GST authorities have raised the demand based on three primary allegations for Financial Year 2021-22:
- ITC Claims: Input Tax Credit claimed from GSTR-3B for cancelled dealers
- Zero-rated Supplies: Supplies not properly substantiated as zero-rated
- ULIP Charges: GST not charged on income reported in Table 5(O) of GSTR-9C on account of Unit Linked Insurance Plan charges
Company's Response and Impact Assessment
Canara HSBC Life Insurance Company has stated that, based on its assessment, the GST demand is not maintainable. The company plans to file an appeal before the competent authority or appellate tribunal in accordance with applicable provisions under the Goods and Services Tax Act.
Regarding the financial impact, the company has indicated that it does not envisage any relevant impact on its financials, operations, or other activities from this demand order.
Regulatory Compliance
The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded the details on its website and informed both NSE and BSE about the development through proper regulatory channels.
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