Star Health and Allied Insurance Company Limited revealed on Tuesday, in a regulatory filing, that it has been served with a new show cause notice from the GST Department, amounting to Rs 66.7 crore.
According to a regulatory filing, the standalone insurer received two orders from the GST authorities in Tamil Nadu for the years 2018-19 and 2019-20, totaling Rs 17.9 crore and approximately Rs 103.7 crore, respectively.
These orders dispute the input tax credit ( ITC ) availed and utilized by the company. An appeal has been filed with the commissioner appeals against the Rs 17.9 crore order, and the hearing is currently underway.
The company also filed a writ petition with the Madras High Court against the Rs 103.7 crore order. The court set aside the order from the GST department, directing a fresh order.
A new show cause notice has been issued, determining the payable amount as Rs 66.7 crore, to which the company has responded. Legal counsel has advised Star Health that liability may not arise, as stated in the stock exchange filing.
In the midst of these developments, the company reported a 16.4% growth in Gross Written Premium ( GWP ) at Rs 3,605.8 crore for the quarter ending December 31, 2023, compared to Rs 3,096.7 crore in the corresponding quarter of the previous year. The Profit after Tax ( PAT ) for the same quarter rose by 37.6% to Rs 289.5 crore, up from Rs 210.5 crore in Q3 of FY23.
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