SBI Life Insurance Company Limited has received a GST order from Delhi tax authorities with a total demand of ₹8.23 lakh, the company informed stock exchanges on December 28, 2025. The order pertains to the financial year 2021-22 and involves issues related to input tax credit and blocked credit provisions.

GST Order Details

The company received the order under Section-73 of the SGST and CGST Act 2017 from the Assistant Commissioner/GSTO, Ward 206, Zone 11, Delhi on December 27, 2025 at 05:29 pm. The order partially upholds tax demands raised under Form GST DRC 07.

Nature of Tax Demands

The GST order addresses two primary areas of concern identified by the tax authorities:

• Blocked Credit Issues: Demand on blocked credit under Section 17(5) of the CGST Act 2017
• Input Tax Credit Claims: Demand on ITC claimed from cancelled dealers, return defaulters, and tax non-payers

These issues relate to the company's GST compliance and input tax credit claims during the financial year 2021-22.

Company's Response

SBI Life Insurance has announced that it will file an appeal against the GST order before the competent authority or appellate tribunal. The company stated it will pursue this appeal in accordance with the applicable provisions under the Goods and Service Tax Act.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details of the communication received from tax authorities, including the financial implications and planned course of action.

The relatively modest amount of the tax demand, totaling ₹8.23 lakh, represents a routine compliance matter for the insurance company. The company's decision to appeal the order indicates its intention to contest the tax authorities' findings through the established legal framework.

SBI Life Insurance Company Limited has received a significant GST demand order from Maharashtra tax authorities, highlighting ongoing compliance challenges in the insurance sector. The company disclosed this development through a regulatory filing under SEBI listing regulations on December 26, 2025.

GST Demand Details

The Deputy Commissioner of State Tax, Fort Division, Mumbai, Maharashtra issued the demand order under Section-73 of the MGST and CGST Act 2017. The order was received by the company on December 26, 2025 at 05:50 PM.

Nature of Alleged Violation

The GST demand stems from alleged discrepancies in Input Tax Credit (ITC) claims. Specifically, the tax authorities have identified a mismatch between ITC claimed in GSTR 3B returns and the corresponding GSTR 2A statements for the financial year 2021-22.

This type of mismatch typically occurs when companies claim input tax credits that are not reflected in their suppliers' filed returns, leading to discrepancies in the GST system's auto-populated forms.

Company's Response Strategy

SBI Life Insurance has announced its intention to challenge the demand order through proper legal channels. The company stated it will file an appeal before the competent authority or appellate tribunal in accordance with applicable provisions under the Goods and Service Tax Act.

The insurance major disclosed this information pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding material developments that could impact the company's operations.

Regulatory Compliance Context

The GST demand order represents a significant compliance matter for SBI Life Insurance, with the total amount of ₹14.67 crores comprising both the disputed tax amount and substantial interest and penalty components. The interest component of ₹5.98 crores reflects the time elapsed since the original assessment period of FY 2021-22.

The company's proactive disclosure and planned appeal demonstrate its commitment to addressing the matter through established legal procedures while maintaining regulatory compliance standards.