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New India Assurance gets NFAC order deleting ₹672 crore tax demand for AY23Shares of New India Assurance Company Ltd ended at ₹147.30, down by ₹1.90, or 1.27%, on the BSE.By Jomy Jos Pullokaran  February 27, 2026, 10:19:23 PM IST (Published)2 Min ReadState-owned New India Assurance Company Ltd on Friday (February 27) said it has received a favourable order from the National Faceless Appeal Centre (NFAC), Delhi, under the Income Tax Department, resulting in the deletion of a ₹672.36 crore income tax demand for Assessment Year 2022-23.

The order was received by the company on February 27, 2026. The National Faceless Appeal Centre (NFAC), Delhi, issued the communication.

Back in September last year, New India Assurance Company Ltd said it had received a tax demand of ₹2,379.13 crore on Tuesday (September 30), including penalties, for alleged non-payment of tax on coinsurance premiums and reinsurance commissions.

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The filing said the Order in Original (DRC-07), issued on September 29, 2025, by the Additional Commissioner of CGST & Central Excise, Palghar Commissionerate, claims that New India Assurance failed to discharge GST on premiums received from ‘Leaders’ in the co-insurance business and on commissions earned from ceded reinsurance premiums.

However, New India Assurance pointed out that the issue pertains to industry-wide practices and believes it has a strong case to contest the demand.

New India Assurance said it will initiate appropriate action and file a detailed response with the authorities within the prescribed timeline, highlighting its contentions. The company added that the order does not affect its financial or operational activities, as it follows CBIC guidelines and relates to a sector-wide matter.

Also Read: New India Assurance Company receives ₹250 crore tax refund for AY 2009-10

The company clarified that the issues raised in the order relate to non-payment of GST on premiums received as a follower in the coinsurance business and non-payment of GST on commissions earned on reinsurance premiums ceded to reinsurance companies.

Shares of New India Assurance Company Ltd ended at ₹147.30, down by ₹1.90, or 1.27%, on the BSE.Continue Reading(Edited by : Jomy Jos Pullokaran)TagsNew India Assurance Companyshare market today