| Company | Value | Change | %Change |
|---|
“…we wish to inform you that the Company has received GST Orders from the Assistant Commissioner of State Tax (INV-6), Investigation-A, Mumbai, Maharashtra (two separate Orders) on December 31, 2024,” HDFC Life Insurance Company said in a regulatory filing.
The orders pertain to the financial year from April 1, 2020, to March 31, 2021, and include a total tax demand of ₹152.87 crore and interest of ₹117.71 crore. No penalty has been imposed.
Also Read: HDFC Life’s 2024 index reveals improved financial confidence post-pandemic
The allegations include the short reversal of proportionate input tax credit on common services attributable to exempted supplies and excess availment of input tax credit under the reverse charge mechanism.
HDFC Life stated that the orders will have no material adverse impact on its financial operations. The company intends to contest the orders through an appeal before the Appellate Authority within the stipulated period.
“These orders will have no adverse material impact on the financial operations of the company and the same shall be further contested by way of an appeal before the Appellate Authority,” it said.
Also Read: HDFC Life maintains 15% growth target for FY25, expects margins around 26%
HDFC Life Insurance reported a 14.8% increase in net profit for the second quarter (Q2) of FY25. The company’s net profit stood at ₹433 crore, compared to ₹377 crore in the same quarter last year. New business premium rose 14% to ₹8,097 crore, slightly below the CNBC-TV18 poll estimate of ₹8,167 crore.
The company’s net premium income grew by 12% year-on-year (YoY) to ₹16,570 crore during the July-September quarter, up from ₹14,756 crore in the corresponding quarter last year. Total annual premium equivalent (APE) jumped 26.7% to ₹3,858 crore, compared to ₹3,045 crore a year ago.
Shares of HDFC Life Insurance Company Ltd ended at ₹617.15, up by ₹0.25, or 0.041% on the BSE.
Also Read: HDFC Life Insurance refutes speculation on Bancassurance regulation changes
