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.