HDFC Life Insurance share price falls over getting ₹942-crore GST demand notice

HDFC Life Insurance share price declined over a percent on Monday after the company said it has received a demand notice of more than ₹942 crore for non-payment of GST.

The stock price fell as much as 1.62% to ₹626.95 apiece on the BSE.

As per the company, the matter relates to the claiming of input tax credit against supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) believes are ineligible for such claims.

Stating that the input tax credit (ITC) case is an industry-wide issue, HDFC Life said the company will be taking appropriate steps in due course to reply to the show cause notice and contest the matter.

Earlier on June 20, HDFC had received approval from the Competition Commission of India to increase its stake in HDFC Life Insurance to more than 50%.

HDFC Life also said that the Insurance Regulatory and Development Authority of India (IRDAI) had granted its approval for transfer of shares of HDFC Life, from HDFC Ltd to HDFC Bank.

At 9:40 am, the shares of HDFC Life Insurance Company were trading 0.06% lower at ₹626.60 apiece on the BSE.