Chennai: Star Health and Allied Insurance Company on Thursday said it has received a demand order for Rs 170.6 crore and penalty of Rs 8.6 crore from the GST. It pertains to non-payment of GST liability on the reinsurance commission received by the company between April 2018 and March 2019.
The standalone health insurer informed the stock exchange that the order on Wednesday relates to industry wide issues. The company said it has a strong case against the levy of the demand, interest and penalty.
However, the outcome and related financial implications of the case cannot be predicted with certainty at this stage, it added. Based on the advice of its tax advisors, appropriate response or appeal to the demand order within the prescribed timelines will be filed, it further said in the regulatory filing.
It may be recalled that while declaring its results for the October-December period of FY24 a fortnight ago, Star Health had said, it received a fresh show cause notice from the GST for Rs 66.7 crore.