GIC Re Faces ₹350 Crore Income Tax Notice for FY23; Plans to Appeal at NFAC

State-owned reinsurer General Insurance Corporation of India (GIC Re) announced on Friday (April 10) that 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, totaling ₹350.47 crore. The order encompasses an assessment under Section 143(3) in addition to the demand notice issued on April 10, 2026.

According to the company, the demand comprises transfer pricing adjustments of ₹88.84 crore, disallowance of Section 14A expenses amounting to ₹2.70 crore, payments made to unregistered GST entities totaling ₹565.01 crore, amortization of investment premium at ₹52.81 crore, and a provision for doubtful debts of ₹329.48 crore.

GIC Re indicated it will file an appeal with the National Faceless Appeal Centre (NFAC) or explore other legal avenues against the notice after consulting with direct tax advisors within 30 days. The company specified that there is no immediate financial or operational impact from the order.
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Last month, General Insurance Corporation of India

decided to discontinue marine hull war risk coverage in various high-risk global regions, as reported by media sources citing an official announcement from the company. The reinsurer issued a notice on March 1 stating that the withdrawal of coverage would take effect from 1900 hours IST on March 3.

The notice informed stakeholders that GIC Re would stop providing Marine Hull War Risk insurance for vessels operating in designated high-risk zones. These zones comprise parts of the Persian or Arabian Gulf and surrounding waters, the Gulf of Oman, specific areas around the Black Sea and Sea of Azov, waters associated with Russia, Ukraine, and Belarus, along with certain sections of the Red Sea, Gulf of Aden, and Indian Ocean.

The restrictions also apply 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 coverage safeguards shipowners against losses resulting from war-related dangers, including armed conflict, piracy, and hostile actions. The withdrawal signifies that vessels entering or operating in the specified regions after the effective date may no longer be protected under GIC Re-backed war risk arrangements.

Shares of General Insurance Corporation of India closed at ₹397.65, gaining ₹9.20, or 2.37%, on the BSE.