Synopsis
Star Health and Allied Insurance faces a ₹49 crore GST demand from tax authorities due to alleged non-payment on coinsurance transactions. The company plans to contest these demands legally while expanding its Home Health Care services to 100 locations across India.Key Takeaways
- Star Health received ₹49 crore GST demand orders.
- Allegations include non-payment on coinsurance transactions.
- Tax notices issued in multiple states.
- The company intends to appeal against the demands.
- Expansion of Home Health Care services to 100 locations.
Mumbai, March 23 (NationPress) Star Health and Allied Insurance Company Limited has been issued 25 tax demand orders by the Goods and Services Tax (GST) authorities across various states.
The cumulative demand, inclusive of penalties, totals ₹49 crore. The tax notices have been directed to the company’s zonal offices located in Haryana, Delhi, Maharashtra, Tamil Nadu, Telangana, and Karnataka.
The authorities claim that the company did not remit GST on specific transactions associated with coinsurance.
Additional allegations include the non-disclosure of these transactions in statutory filings along with the omission of invoice issuance for such services.
"The alleged infractions include the failure to pay GST on coinsurance transactions as well as the non-disclosure of these transactions in the statutory returns filed periodically, alongside the lack of invoices for coinsurance services," stated an exchange filing.
In Haryana, Star Health's office has received five tax demand orders totaling ₹4.9 crore. These orders were issued by the Additional Commissioner of GST and Central Excise in Gurugram.
In the same vein, the company's office in Delhi has been served with four orders aggregating ₹4.7 crore. The Maharashtra zonal office has encountered the most significant tax demand of ₹19.4 crore through five orders.
These orders were issued by the GST authorities in Mumbai East, Andheri East, and Mumbai South-West. In Tamil Nadu, the company has received five orders totaling ₹16.2 crore from the Chennai North GST office.
The Telangana office has also received five tax demand orders, amounting to ₹3.8 crore. Meanwhile, the Karnataka office has been served a single order demanding ₹12.8 lakh.
Star Health has announced that, based on legal counsel's guidance, it will file an appeal or a writ petition to contest these tax demands. The company is prepared to undertake appropriate legal measures to resolve the matter.
In the interim, last month, the company revealed its expansion of Home Health Care services to 100 locations across India.
Launched in July 2023, this initiative now encompasses 85 percent of Star Health Insurance’s customer base, offering cashless medical care at their doorstep.
