The New India Assurance Company Limited has informed regarding Order received from Additional Commissioner CGST & Central Excise Palghar Commissionerate.
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On 29 September 2025, New India Assurance received an Order in Original from the Additional Commissioner of CGST & Central Excise, Palghar, alleging that the company failed to pay GST on premiums received as a follower in coinsurance business and on reinsurance commissions earned. The order raises a tax demand of approximately Rs. 237.91 crore along with penalty under section 73(9) of the CGST Act. The company plans to contest the order, citing the 53rd GST Council meeting (June 2024) and Section 149 of the Finance Act 2024, which declared coinsurance premiums and reinsurance commissions as 'No Supply' under Schedule III of the CGST Act. CBIC Circular No. 244/01/2025-GST has also regularized such demands for the period 1 July 2017 to 31 October 2024 on an 'as is where is' basis. The company states this is an industry-wide issue and believes it has a strong case on merits.
Although the tax demand is sizeable (around Rs. 238 crore plus penalty), the company has stated there is no impact on its financial, operational, or other activities, as the matter has been clarified in favour of insurers by the GST Council and CBIC. The stock is unlikely to face lasting pressure, but investors should watch for updates on the company's response and any further developments in the appeal process.