Max Financial Services Limited has disclosed that its material subsidiary, Axis Max Life Insurance Limited, has received Show Cause Notices (SCNs) from the GST Department. These notices propose a demand of tax, interest, and penalty aggregating to approximately ₹35.29 crore. The SCNs relate to the fiscal years 2020-21 to 2024-25 and allege wrongful availment and utilization of Input Tax Credit. Axis Max Life Insurance believes it has availed eligible Input Tax Credit in compliance with relevant laws and is reviewing the notices to file a response within the prescribed timelines.
GST Show Cause Notices Issued to Axis Max Life Insurance
Max Financial Services Limited announced on August 8, 2026, that its material subsidiary, Axis Max Life Insurance Limited, has received Show Cause Notices (SCNs) from the GST Department. These notices are in relation to the fiscal years FY 2020-21 to FY 2024-25. The allegations pertain to the wrongful availment and utilization of Input Tax Credit.
Proposed Tax Demand and Company’s Stance
The SCNs propose a demand for tax, interest, and penalty that collectively amounts to approximately ₹35.29 crore. Axis Max Life Insurance Limited has stated that it believes it has availed eligible Input Tax Credit in full compliance with the relevant provisions of the Central Goods and Service Tax Act, 2017, and other applicable laws. The company is currently reviewing the notices and will be filing its response within the stipulated timelines.
No Impact on Operations
The company has also clarified that, at this stage, there is no impact on the operations or other activities of Axis Max Life Insurance Limited due to these notices. Max Financial Services Limited will continue to keep its stakeholders informed of any material developments concerning this matter.
Source: BSE
