New India Assurance Company Limited just got hit with a massive Goods and Services Tax (GST) demand notice worth Rs 2,379 crore. The news came in a filing to the stock exchange on Tuesday, revealing that the Additional Commissioner of Central GST in the Palghar Commissionerate issued the order dated September 29, 2025.
The notice targets two main issues: the company allegedly didn’t pay GST on premiums it received as a “follower” in coinsurance deals, and it skipped GST on commissions earned from reinsurance premiums paid to other firms. In simple terms, when New India Assurance teams up with a lead insurer on big policies or passes risks to reinsurers, those earnings drew the taxman’s attention.
But the insurance giant isn’t sweating it. In its statement, the company stressed that this GST demand won’t disrupt its financial health or day-to-day operations. They point to a key clarification from the Central Board of Indirect Taxes and Customs (CBIC) and advice from their tax experts as reasons they have a solid defense lined up. New India Assurance plans to respond to the authorities and take the right steps within the deadlines.
On the market front, shares of New India Assurance bucked the trend and closed 0.55% higher at Rs 189.10 on the National Stock Exchange (NSE) that day, even as the benchmark Nifty index dipped 0.1%. Over the past year, though, the stock has slid 17.94%, and it’s down 6.63% so far in 2025—showing some rough waters for investors amid these GST challenges in the insurance sector.
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