HDFC Life Insurance Company Limited, established in 2000, is one of India’s leading life insurance companies, offering a comprehensive range of life insurance and investment solutions. Headquartered in Mumbai, Maharashtra, the company operates as a subsidiary of HDFC Ltd. (Housing Development Finance Corporation), one of India’s premier financial institutions.
HDFC Life Insurance Company announced on January 1, 2025, that it had received 2 GST orders from the Assistant Commissioner of State Tax (INV-6), Investigation-A, Mumbai, Maharashtra, on 31 December 2024.
The orders cover the fiscal year from April 1, 2020, to March 31, 2021, with a total tax demand of ₹152.87 crore and interest of ₹117.71 crore. Importantly, no penalties have been levied.
The claims highlight alleged shortfalls in the reversal of proportionate input tax credit on common services allocated to exempt supplies, as well as the excessive utilisation of input tax credit under the reverse charge mechanism.
HDFC Life has assured stakeholders that these orders will bear no significant adverse impact on its financial performance. The company plans to challenge the orders by filing an appeal with the Appellate Authority within the prescribed timeframe.
HDFC Life delivered an impressive performance in the second quarter (Q2) of FY25, posting a robust 14.8% surge in net profit. The company recorded a net profit of ₹433 crore, up from ₹377 crore in the same period last year.
New business premium witnessed a 14% increase, reaching ₹8,097 crore, Net premium income also climbed 12% year-on-year (YoY) to ₹16,570 crore during the Q2 FY25, compared to ₹14,756 crore in the corresponding period of the previous year. Notably, the total annual premium equivalent (APE) soared by 26.7%, rising to ₹3,858 crore from ₹3,045 crore a year earlier.
HDFC Life Insurance Company Ltd.’s share price closed at ₹619.95 per share on NSE today.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
