Bajaj Allianz gets GST Demand Notice of 1010 Crore

Bajaj Allianz General Insurance Co. on Tuesday received a GST demand notice of Rs.1,010 crore for alleged non-payment of GST on the co-insurance and re-insurance premiums.

The Show Cause-Cum-Demand Notice on Bajaj Allianz was sent by the Directorate General of GST Intelligence (DGGI) on September 29.

The notice pertains to non-payment of GST on the co-insurance premium and on reinsurance commission accepted premiums parted by Bajaj Allianz with various Indian and foreign reinsurance companies from July 2017 to March 2022, according to an exchange filing.

Under Section 73(1) of the CGST Act, Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized for any reason, other than the reason of fraud or any willful-misstatement or suppression of facts to evade tax,-

He shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilized input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.

The company said that it would file an appropriate response to the show cause-cum- demand notice within the timeline prescribed under GST law upon the advice from its tax advisors.

Follow the Link to understand about sec.73 & provisions of tax recovery under CGST Act:https://uttarakhandaudit.uk.gov.in/files/GSTNewAct/ilovepdf_merged_(15).pdf

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