Star Health Challenging Rs 49 Crore GST Demand from Tax Authorities

Star Health and Allied Insurance Company Limited is set to contest a Rs 49 crore tax demand issued by the Goods and Services Tax (GST) authorities across multiple states. 

The company has received 25 tax demand orders from various zonal offices in Haryana, Delhi, Maharashtra, Tamil Nadu, Telangana, and Karnataka.

Authorities claim that Star Health failed to pay GST on specific transactions related to coinsurance. The alleged violations include non-disclosure of such transactions in statutory filings and the failure to issue invoices for related services.

In an official exchange filing, Star Health clarified that the tax notices primarily concern “non-payment of GST on coinsurance transactions as a follower, non-disclosure of these transactions in statutory returns, and the non-issuance of invoices.”

The highest tax demand has been issued to the Maharashtra zonal office, amounting to Rs 19.4 crore across five orders from GST authorities in Mumbai East, Andheri East, and Mumbai South-West. Chennai North GST office has served five orders totaling Rs 16.2 crore to the Tamil Nadu office. The Haryana office faces Rs 4.9 crore in five tax orders, while Delhi’s zonal office has been served four orders amounting to Rs 4.7 crore. Telangana’s office has received five orders totaling Rs 3.8 crore, whereas Karnataka’s office has been issued a single demand order for Rs 12.8 lakh.

Star Health has stated that, based on legal counsel's advice, it will file an appeal or a writ petition to challenge the tax demands. The company is prepared to take necessary legal measures to address the issue.

In a separate development, Star Health recently announced the expansion of its Home Health Care services to 100 locations across India. Initially launched in July 2023, this initiative now provides cashless medical care at home, covering 85 percent of the company’s customers nationwide.