General Insurance Corporation of India (GIC Re), a leading reinsurance company, has announced the appointment of Shri Tapan Kumar Mondal as a Government Nominee Director on its Board, effective July 24, 2025. This appointment comes as part of the Ministry of Finance's efforts to strengthen the governance structure of public sector insurance companies.

New Director's Profile

Tapan Kumar Mondal, currently serving as Deputy Secretary in the Department of Financial Services, Ministry of Finance, brings a wealth of experience to his new role at GIC Re. Key points about Mondal's background include:

• A Central Secretariat Service officer from the 1990 batch
• Holds a B.Sc. degree from the University of Calcutta
• Extensive experience across various government departments, including:
  • Directorate General of Supplies and Disposals (DGS&D)
  • Department of Industrial Policy and Promotion (now DPIIT)
  • Ministry of Defence

In his current role, Mondal works as Deputy Secretary (Vigilance) in the Department of Financial Services. He also serves as the Nodal Officer for the Andaman & Nicobar Islands Union Territory Level Bankers' Committee, showcasing his involvement in regional financial matters.

Appointment Details

The Ministry of Finance, through a letter dated July 24, 2025, conveyed that the Central Government has nominated Shri Tapan Kumar Mondal as Director on the Board of GIC Re. This appointment is effective immediately and will continue until further orders.

GIC Re has confirmed that Mondal is not related to any existing directors of the corporation. Furthermore, he is not debarred from holding the position of director by any regulatory authority, ensuring compliance with corporate governance norms.

Regulatory Compliance

In line with the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, GIC Re promptly disclosed this appointment to the stock exchanges.

Recent Developments

While the appointment of Shri Tapan Kumar Mondal is the primary focus, it's worth noting that GIC Re has recently faced some regulatory challenges:

1. The company received an order from the Commissioner Appeals CGST & Central Excise, Mumbai, demanding a tax liability of Rs. 138.47 crore (including interest and penalties) for alleged short payment of tax under the CGST Act 2017 for FY 2017-18 and FY 2020-21.

2. Another order from the same authority demands a tax liability of Rs. 3.79 crore for alleged contravention of Rule 42 reversal under the CGST Act 2017 for FY 2017-18.

GIC Re has stated that these orders do not have a material impact on its financials, operations, or other activities. The company intends to file appeals against both demands at the GST tribunal after consulting with its tax advisors.

As GIC Re navigates these regulatory matters, the addition of Shri Tapan Kumar Mondal to its Board is expected to bring valuable insights from his extensive experience in various government departments, potentially strengthening the company's governance and strategic decision-making processes.

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.