The New India Assurance Company Limited — Important, 30-09-2025: Disclosure of material issue

New India Assurance (#NIA) has received a significant tax demand related to GST.

* **The Issue:** An order has been issued by an Additional Commissioner, demanding Rs 2,379.13 Cr, along with penalties. This demand is for alleged non-payment of GST on premiums received in co-insurance business (as a follower) and on reinsurance commission earned.

* **Company’s Response/Mitigation:** NIA believes it has a strong case to defend on merits. The company highlights recent developments, including the 53rd GST Council meeting and the Finance Act, 2024, which declared co-insurance premium and reinsurance commission transactions as "No Supply." Additionally, a CBIC circular regularized past demands on an "As is where is" basis. NIA will initiate appropriate action to challenge the order.

* **Possible Impact:** The company states that the order is not expected to have any impact on its financial, operational, or other activities, given the industry-wide nature of the issue and the clarifying circulars issued by the CBIC.