HDFC Life Insurance has received a demand notice of over Rs 942 crore for non-payment of GST. The notice is related to claiming input tax credit for ineligible services.
HDFC Life is currently reviewing the demand notice and will consult its legal counsel for appropriate action. The company emphasizes its commitment to complying with laws and regulations.
According to the Directorate of Goods and Services Tax Intelligence (DGGI), HDFC Life claimed input tax credit on ineligible services like marketing and advertising. Additionally, they allegedly didn’t pay GST for services from third-party vendors.
HDFC Life denies the allegations and asserts that it has always followed applicable laws. The company plans to challenge the demand notice through appropriate action.
The investigation into the case is ongoing, and it remains unclear whether HDFC Life will have to pay the full amount. Nonetheless, this case is significant for the insurance industry and raises concerns about the eligibility of certain services for input tax credit.