HDFC Life Insurance on Friday said it has received a demand notice of more than ₹942 crore for non-payment of GST.
The matter relates to the claiming of input tax credit against supply of services, which the Directorate General of Goods and Services Tax Intelligence (DGGI) believes are ineligible for such claims, it said.
"HDFC Life Insurance Company has received a show cause cum demand notice from the DGGI, Mumbai zonal unit asking the company to show cause why a tax of ₹942,18,46,028 pertaining to the period July 2017 to FY 2022, should not be demanded from the Company," HDFC Life said in a regulatory filing.
Stating that the input tax credit (ITC) case is an industry-wide issue, HDFC Life said the company will be taking appropriate steps in due course to reply to the show cause notice and contest the matter.
"It may be noted that ₹250 crore has been deposited under protest with the authority (DGGI) in this matter in the past,” the private sector insurer added.
On June 20, HDFC Life had said that the Competition Commission of India has approved HDFC Ltd -- one of the promoters of the company -- to increase its stake in HDFC Life to more than 50 per cent.
In a filing on Friday, HDFC Life said the Insurance Regulatory and Development Authority of India (IRDAI) has granted its approval for transfer of shares of HDFC Life, from HDFC Ltd to HDFC Bank.
"We also wish to inform that IRDAI vide its said letter has also granted its approval for HDFC Limited to acquire additional shares in HDFC Life so as to hold more that 50% of its total share capital,” HDFC Life said.