Star Health gains despite getting Rs 104 crore GST demand notice

Private sector health insurance firm Star Health and Allied Insurance Company has received a notice from the GST department in Chennai to pay Rs 104 crore  tax for certain discrepancies in the returns filed for the year 2019-20. 

In a filing to the stock exchanges on Thursday, August 10, the insurance company said that it received the order on June 29 from the GST (Goods and Services Tax) department in Chennai.

Details of GST notice

Going by the order, the GST department has observed certain discrepancies in the statutory returns -- GSTR1, GSTR2A, GSTR7, and GSTR3B-- filed for the year 2019-20. 

The discrepancies pertain to output mismatch, input mismatch, and variation in ineligible tax credits (ITC), as per the filing.

The order requires the insurance firm to pay Rs 103.68 for the year 2019-20 to the GST department of Tamil Nadu.

Star Heath’s response

The company informed the bourses that it would file its reply against the order within the prescribed timelines. 

Earlier this week, Star Health inked a "strategic corporate alliance" with Standard Chartered Bank to provide its insurance products to customers.

The collaboration is aimed at providing health insurance solutions across 100 branches of the private bank present in 42 cities across India.

Earlier this week, another insurance firm ICICI Lombard received a show-cause notice from the Directorate General of GST Intelligence demanding Rs 273 crore in taxes.

The demand was about GST on salvage and ineligible tax credit for motor insurance claims.

Despite the demand notice, shares of Star Health were trading 1.49 per cent higher at Rs 639 apiece on BSE at 10:55 AM.