The New India Assurance Company Limited — Important, 22-08-2025: Disclosure of material issue

The New India Assurance Company Ltd. (#NIACL) has received a Show Cause Notice from the Assistant Commissioner, New Delhi, for an alleged GST demand of **Rs 73.54 crore** (including tax, interest, and penalty) for the Financial Year April 2021 to March 2022.

The **issue** stems from alleged violations, including:

* Excess claim of Input Tax Credit (ITC).

* Requirement to reverse ITC on non-business transactions and exempt supplies.

* Under-declaration of ineligible ITC.

* ITC claimed from cancelled dealers, return defaulters, and non-tax payers.

The **possible impact** for the company is a significant financial liability if the demand is eventually upheld.

**NIACL's response** is that it believes it has a strong case to defend on merits. The company, based on advice from its tax consultants, is in the process of filing a detailed reply with the Adjudicating Authority within the prescribed timelines. While this process is underway, the company states there is no immediate impact on its financial, operational, or other activities from the receipt of this notice.