The New India Assurance Company Ltd. has received an order regarding GST obligations on co-insurance and reinsurance transactions. The order alleges a tax demand of ₹2379,13,48,877/- along with a penalty. The company believes it has a strong case based on recent clarifications from the CBIC which declared these transactions as “No Supply.” The company will initiate appropriate action to defend its position.
GST Order Received
The New India Assurance Company Ltd. has received an Order In Original dated September 29, 2025, from the Additional Commissioner CGST & Central Excise Palghar Commissionerate. The order pertains to GST on co-insurance business and reinsurance commission.
Details of the Order
The order states that the company failed to discharge the appropriate GST on premium received from ‘Leader’ in co-insurance business and did not discharge GST liability on ‘reinsurance commission’ earned on reinsurance premium ceded. The order alleges a tax demand of ₹2379,13,48,877/- along with a penalty under the CGST and SGST Acts.
Company’s Position and Action
According to the June 22, 2024, GST Council meeting, co-insurance premium and reinsurance commission transactions are declared as “No Supply” under Schedule III of the CGST Act, 2017. The company believes it has a strong case to defend based on this clarification and advice from tax consultants. The company will be initiating appropriate action against the order and will file an appropriate response.
Clarification on Industry-Wide Issue
The company has stated that the order pertains to an industry-wide issue and the receipt of this order has no impact on the financial or other activities of the Company pursuant to the clarification issued by the CBIC.
Source: BSE
