The New India Assurance Company Limited receives GST notice Over co-insurance premiums and reinsurance commissions

New Delhi: The New India Assurance Company Limited (NIA) on Tuesday confirmed that it has received a Goods and Services Tax (GST) demand notice of ₹2,379 crore.

The notice was issued by the Additional Commissioner of Central GST, Palghar Commissionerate, the insurer said in a stock exchange filing.

"This is in reference to above, we would like to inform that the company has received order in original in form DRC-07 vide order dated 29/09/2025 under Rules 100(1), 100 (2), 100 (3), 8 142 (5) of the CGST/MHGST ACT 2017 from Additional Commissioner CGST & Central Excise Palghar Commissionerate," the company added.

According to the notice, the demand relates to alleged non-payment of GST on premiums received as a follower in the co-insurance business and on commissions earned from reinsurance premiums paid to reinsurance companies.

"The Order states that NIA had failed to discharge the appropriate GST on the amount of premium received by them from the respective 'Leader' in co-insurance business and NIA was also not discharging any GST liability on 'reinsurance commission," the filing said.

The company, however, said the notice will not impact its financial or operational activities. It cited a clarification issued by the Central Board of Indirect Taxes and Customs (CBIC) and guidance from its tax consultants, adding that it has a "strong case to defend on merits."

NIA said it will take appropriate action within the prescribed timelines and file its response with the authorities.

Shares of New India Assurance ended 0.55% higher at ₹189.10 on the National Stock Exchange (NSE) on Tuesday, even as the Nifty slipped 0.1%. The stock has declined 17.94% over the past year and is down 6.63% so far in 2025.

IANS