Reliance General Insurance sent GST notices for ₹922 crore by DGGI

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₹922.58 crore to Reliance General Insurance Company (RGIC), the crown jewel of Reliance Capital Ltd, reports said on October 8. Of the four notices, one pertains to the GST of ₹478.84 crore, applicable as tax on re-insurance commission booked through the re-insurance services ceded to various Indian and foreign entities, news agency PTI reported, citing sources. The notice for the second biggest amount, of ₹359.70 crore, is related to the applicability of tax on the co-insurance premium booked as a follower entity by RGIC in the co-insurance transactions, the persons aware of the developments reportedly added.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! The third DGGI notice is related to an amount of ₹78.66 crore, which is linked to the case of allegedly availing input tax credit (ITC) without underlying services in relation to the expenses incurred on marketing, the report added, citing the persons. This is related to the period between July 2017 and March 2022, they reportedly added.

The company, in response to this, has reportedly paid ₹10.13 crore under protest. The fourth notice of ₹5.38 crore is regarding the case of non-payment of tax on reverse charge basis, applicable on the import of reinsurance services from foreign reinsurers, the report said. This matter is related to the exempted crop insurance scheme, and pertains to the period between July 2017 and January 2018, it added.