New India Assurance Company Limited (NIACL), a government-owned general insurer, has received a show cause notice from the Goods and Services Tax (GST) authorities demanding over ₹2,298 crore. The notice pertains to alleged GST liabilities over a five-year period—April 2018 to March 2023.
According to the company’s regulatory filing with the stock exchanges, the notice was issued by the Office of the Additional Commissioner, Mumbai-South, and the Maharashtra State GST Department. The notice demands that the company explain why the tax amount of ₹2,298,06,74,252 should not be recovered from it under GST provisions.
Company to Contest Notice, Cites Strong Legal Grounds
Responding to the development, New India Assurance stated that it is currently preparing a comprehensive reply to the authorities. The company expressed confidence in its legal position, asserting that it has a “strong case on merit.” Acting on the advice of tax experts, NIACL will submit a detailed rebuttal within the stipulated timeframe, addressing the discrepancies and raising objections to the adjudication.
While the specific nature of the dispute has not been disclosed in the filing, such large demands generally arise from issues related to input tax credit, valuation, classification, or compliance failures in service tax transition to GST.
Stock Performance and Market Sentiment
The news comes at a time when the company’s stock is already under pressure. On June 27, 2025, shares of New India Assurance traded at ₹183.83 on the National Stock Exchange (NSE), witnessing a marginal decline. Over the past 12 months, the stock has fallen by 20.87%, and by 11.48% in the last six months. However, on a longer time frame of five years, the stock has appreciated by 61.19%.
Investors are closely watching how the company handles the tax demand, with many awaiting further clarification on the nature of the GST liabilities and the potential financial impact, if any. As of now, no provisioning has been announced in relation to the demand.