The Directorate General of Goods and Services Tax Intelligence (GST) has issued a tax demand and Show Cause Cum Demand Notice to Bajaj Allianz General Insurance Company worth Rs 1,010 crore for alleged non-payment of taxes during July 2017 to March 2022.
"Please note that Bajaj Allianz General Insurance Company Limited ('BAGIC'), an unlisted material subsidiary of the Company, has received a Show Cause Cum Demand Notice from the Directorate General of Goods and Services Tax Intelligence, Pune Zonal Unit, under Section 73(1) of the Central Goods and Services Tax Act, 2017 ('the Act'), on 29 September 2023, alleging a tax demand of Rs 1,010,05,80,540," the exchange filing.
The notice claims that the general insurer has not paid GST on reinsurance premium, despite receiving commissions from co-insurance companies.
"The alleged demand and the impugned Show Cause Cum Demand Notice pertain to non-payment of GST on the co-insurance premium accepted as a follower in case of co-insurance transactions and non-payment of GST on re-insurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022," the filing added.
