SBI Life Insurance Company has received an order from the Joint Commissioner of State Tax (Appeal) I, Mumbai, concerning a GST demand originally intimated on April 30, 2024. The appellate authority partially upheld the demand for the FY 2018-19, reducing the total liability. The company plans to appeal this revised order before the Competent Authority/Appellate Tribunal immediately.
Update on Earlier Tax Demand Intimation
On February 20, 2026, SBI Life Insurance Company Limited received an order from the Joint Commissioner of State Tax (Appeal) I, Mumbai. This order relates to the tax demand initially disclosed on April 30, 2024, pertaining to the Financial Year F.Y. 2018-19.
Summary of the Appellate Order
The appellate authority partially upheld the tax demand raised previously via Form GST DRC 07. The original demand (as disclosed earlier) totaled Rs. 288,66,57,520/-, comprising Tax, Interest, and Penalty.
The update provided by the appellate authority confirms a reduced liability based on the partial relief granted:
- Tax Amount: Rs. 63,36,16,679/-
- Interest: Rs. 89,75,18,026/-
- Penalty: Rs. 6,33,61,667/-
- New Confirmed Total Amount: Rs. 1,59,44,96,372/-
Reasons for the Original Communication
The issues leading to the original demand included:
- Non-reversal of the Input Credit under Rule 42 & 43 of MGST Act on earnings from securities transactions.
- Mismatch in Input Tax Credit (ITC) claimed in GSTR 3B versus GSTR 2A.
- Input Credit availed on the Blocked credit under Section 17(5) of the SGST Act.
Next Steps and Company Stance
The company has stated clearly that it shall file an appeal against this order before the designated Competent Authority / Appellate Tribunal, in accordance with the applicable provisions of the Goods and Service Tax Act. No further financial aberrations or non-compliances have been identified beyond those already referenced in the communication.
Source: BSE
