Insurance Sector Faces ₹5,500 Crore GST Liability

HDFC Life’s ₹2,422.97 crore penalty (excluding tax demand of 942.18) for wrongful ITC claims sets a major precedent, with over 30 insurers under scrutiny. 

GST Officials has alleged that commissions are disguised as marketing expenses without actual supply of service/goods using middlemen for paying to agents.

Interesting thing is that initial order was having 100% of tax as penalty and within 3 days one corrigendum was issued wherein the penalty was made ~ 250% of the tax amount raising questions on what led to this change....

Order dated 2nd Feb

Corrigendum to Order dated

Document can be sourced from 188c1294-1251-420d-8dd1-1ab9c250a045.pdf

5th Feb