SBI Life Insurance Company Limited, one of the leading private life insurance providers in India, has received a GST demand of ₹61.22 lakh from the Excise and Taxation Officer in Rohtak, Haryana. The order, which was issued on February 28, 2025, pertains to alleged violations related to the company’s Goods and Services Tax (GST) filings for the financial year 2020-2021.

The violations mentioned in the demand include the following key issues:

1. Ineligible Input Tax Credit (ITC): The company has been accused of claiming ITC from suppliers who failed to file GSTR-3B.
2. Excess ITC Availment: The demand also points to an excess Input Tax Credit claimed through GSTR-3B as compared to the GSTR-2A records.
3. Mismatch of ITC: There was a mismatch between the ITC claimed in GSTR-2A and GSTR-3B, which violated the prescribed GST rules.
4. Non-Reversal of ITC: The company allegedly failed to reverse the Input Tax Credit as per Rule 42 & 43 of the CGST Rules on its exempted turnover.

As a result of these violations, the Excise and Taxation Officer has raised a demand of ₹33,13,325/- in tax along with an additional interest of ₹24,77,392/- and a penalty of ₹3,31,333/-, bringing the total amount payable to ₹61,22,050/-.

In compliance with the provisions of the Goods and Services Tax Act, SBI Life plans to file an appeal against the demand order before the Competent Authority/ Appellate Tribunal. The company is exercising its right to challenge this demand, and further updates will be provided as per the legal proceedings.

Impact on Financial Operations

This GST demand, if upheld, may have an impact on SBI Life’s financials for the financial year 2024-2025, with a total amount payable of ₹61.22 lakh. However, the company has stated that it intends to resolve the matter through legal channels, which could potentially alter the final financial impact.

SBI Life’s filing of an appeal indicates that the company is taking proactive steps to address the discrepancies raised by the authorities, and any changes resulting from the appeal process will be disclosed in future filings.

Conclusion

The GST demand serves as a reminder of the importance of compliance with GST rules for all companies, particularly in industries that handle large volumes of transactions and have complex tax structures. SBI Life has assured its stakeholders that it will take appropriate action, including filing an appeal, to address the matter in accordance with the law.

The company’s transparency in reporting such matters ensures that investors and stakeholders remain informed about developments that may impact its financial standing. It is likely that the appeal will play a crucial role in determining the outcome of this situation.

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