Star Health and Allied Insurance has received an order from the Deputy Commissioner of State Goods & Service Tax, Tamil Nadu, imposing a penalty of ₹53,25,517. The penalty is related to the availment of excess Input Tax Credit (ITC) during the period from April 2021 to March 2022. The company intends to file an appeal against the order and believes the liability is unlikely to arise.
Penalty Imposed
Star Health and Allied Insurance Company has been notified of a penalty imposed by the Office of the Deputy Commissioner of State Goods & Service Tax, Tamil Nadu. The order, dated December 17, 2025, specifies a penalty amount of ₹53,25,517. This is regarding excess Input Tax Credit (ITC) availed by the company.
Details of the Issue
The penalty relates to the period from April 2021 to March 2022. The alleged violation pertains to excess ITC availed, contravening specific provisions. The company emphasizes that GST demand is arising due to excess ITC availed.
Company Response
Star Health intends to contest the order. The company will be filing an appeal to address the matter with the appropriate authorities. Based on legal counsel, the company currently believes that the liability related to this penalty is unlikely to materialize.
Source: BSE