On Friday, HDFC Life Insurance said it had acknowledged a demand notice of more than Rs 942 crore for non-payment of GST.
The situation recounts the demand for an input tax credit against the supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) believes is unentitled to such claims.

HDFC Life said in an exchange filing that the Insurance Company received a demand notice from the Directorate General of GST Intelligence, Mumbai Zonal Unit, requesting the company to show cause why a tax of Rs 942,18,46,028 relating to the period July 2017 to FY 2022, should not be demanded from the company.

Affirming that the input tax credit (ITC) case is an industry-wide issue, HDFC Life mentioned the company would be initiating appropriate steps in due sequence to reply to the show cause notice and contest the matter.
On June 20, HDFC Life stated that the Competition Commission of India had permitted HDFC Limited (promoter company) to upsurge its stake in HDFC Life to more than 50%.

“It may be well-known that Rs 250 crore has been deposited under protest with the authority (DGGI) in the past,” the private sector insurer added.
In Friday’s report, HDFC Life Insurance said the Insurance Regulatory and Development Authority of India (IRDAI) had approved the shares transfer of HDFC Life from HDFC Limited to HDFC Bank.