Canara HSBC Life Insurance Receives GST Demand Order
Canara HSBC Life Insurance Company Limited announced it received a demand order under Section 74 of the UPGST and CGST Act, 2017 from the Office of the Deputy Commissioner, Lucknow Sector-20, Lucknow (C), Lucknow II, Uttar Pradesh on March 30, 2026. The order pertains to the financial year 2019-20 and follows a Show Cause Notice dated April 25, 2025.The demand includes ₹ 1,50,82,434 in tax, ₹ 1,78,73,303 in interest, and ₹ 1,50,82,434 in penalty, totaling ₹ 4,80,38,171. The authority alleges non-compliance with sections 16 & 17 of the CGST Act, 2017, and excess Input Tax Credit (ITC) claimed in GST returns.
According to the company’s assessment, the demand is not maintainable, and an appeal will be filed against the order before the Competent Authority/Appellate Authority. Canara HSBC Life Insurance does not anticipate a significant impact on its financial performance, operations, or other business activities as a result of this order.
| Particulars | Details | |
|---|---|---|
| 1 | Name of the Authority | Deputy Commissioner, Lucknow Sector-20, Lucknow (C), Lucknow II, Uttar Pradesh |
| 2 | Nature and details of the action(s) taken or order(s) passed | Demand order received under Section 74 of UPGST and CGST Act, 2017 for the Financial Year 2019-20, pursuant to Show Cause Notice (SCN) dated 25 th April 2025. |
| 3 | Date of receipt of communication from the Authority | The aforesaid Order was received on 30 th March 2026. |
| 4 | Details of the violation(s)/ contravention(s) committed or alleged to be committed | Authority has raised a demand of GST along with applicable Interest and penalty on account of below mentioned allegations: - ITC claimed is not complied with section 16 & 17 of CGST Act, 2017, - Excess ITC claimed in GST return (GSTR-3B) in comparison to ITC reflected over the GST portal (Table 8A of GSTR-9). Breakdown of Demand: 1) Tax: ₹ 1,50,82,434/- 2) Interest: ₹ 1,78,73,303/- 3) Penalty: ₹ 1,50,82,434/- 4) Total: ₹ 4,80,38,171/- |
| 5 | Impact on financial, operation or other activities of the Company, quantifiable in monetary terms to the extent possible | Based on Company's assessment, the aforesaid demand is not maintainable, and the Company shall file an appeal against the order. The Company does not envisage any relevant impact on its financials, operations or other activities of the Company. |
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