The New India Assurance Company Limited has informed the Exchange about General Updates.
NIACL · price
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Awaiting price reaction for this filing.
The New India Assurance Company has received a tax order (Order in Original No. 10/PLG/CGST/ADC/VKA/DGGI/NEW INDIA/2025-26) dated 29 September 2025 from the Additional Commissioner of CGST & Central Excise, Palghar Commissionerate, alleging non-payment of GST on two counts: premium received as a follower in co-insurance business, and commission earned on reinsurance premium ceded. The order raises a tax demand of Rs. 2,379.13 crore (Rs. 2,379,13,48,877) along with penalty under Section 73(9) of the CGST Act, 2017. The company is contesting the order, noting that the 53rd GST Council meeting (June 2024) and CBIC Circular 244/01/2025-GST have classified such co-insurance premium and reinsurance commission transactions as 'No Supply' under Schedule III, and that the matter has been regularised on an 'as is where is' basis for the period July 2017 to October 2024. The company states it will file an appropriate response within prescribed timelines and that the issue is industry-wide with no material financial or operational impact.
Although the demand is sizeable (Rs. 2,379 crore), the company believes it has a strong defence based on favourable CBIC clarifications treating these transactions as 'No Supply' and is not recognising any immediate financial impact. However, until the matter is fully resolved, this remains an overhang on the stock and could weigh on sentiment if the appeal is unsuccessful.