GIC Re receives ₹350 crore income tax demand notice for FY23; to file appeal at NFAC

State-owned reinsurer General Insurance Corporation of India (GIC Re) on Friday (April 10) said it has received a notice of demand under Section 156 of the Income Tax Act, 1961, from the Income Tax Department’s Assessment Unit for Assessment Year 2023-24, amounting to ₹350.47 crore. The order includes an assessment under Section 143(3) along with the demand notice issued on April 10, 2026.

As per the company, the demand includes transfer pricing additions of ₹88.84 crore, disallowance of Section 14A expenses of ₹2.70 crore, payment made to unregistered GST entities of ₹565.01 crore, amortisation of premium on investment of ₹52.81 crore, and provision for doubtful debts of ₹329.48 crore.

GIC Re said it will pursue an appeal before the National Faceless Appeal Centre (NFAC) or other legal options against the notice after consultation with direct tax consultants within 30 days. The company stated there is no financial or operational impact arising from the order at this stage.

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Last month, General Insurance Corporation of India

had decided to withdraw marine hull war risk cover in several high-risk global regions, according to media reports citing an official notice issued by the company. The reinsurer issued a notice on March 1 stating that the withdrawal of cover would take effect from 1900 hours IST on March 3.

The notice informed stakeholders that GIC Re would cease to provide Marine Hull War Risk insurance coverage for vessels operating in designated high-risk zones. These areas include parts of the Persian or Arabian Gulf and adjoining waters, the Gulf of Oman, certain regions around the Black Sea and Sea of Azov, waters linked to Russia, Ukraine and Belarus, as well as select stretches of the Red Sea, Gulf of Aden and Indian Ocean.

The restrictions also extend to countries under sanctions by the United Nations, United Kingdom, United States or European Union.

Also Read: GIC Re Q1 results: Profit surges 81% YoY, NII rises; underwriting losses narrow

Marine hull war risk cover protects shipowners against losses arising from war-related perils, including armed conflict, piracy, and hostile acts. The withdrawal means vessels entering or operating in the specified regions after the effective date may no longer be covered under GIC Re-backed war risk arrangements.

Shares of General Insurance Corporation of India ended at ₹397.65, up by ₹9.20, or 2.37%, on the BSE.