New India Assurance Share Price Rise 2% After GST Relief Update

The New India Assurance Company share price (NSE: NIACL) climbed up to 2.3% on December 31, ending the year on a positive note. The stock touched an intraday high of ₹156.45, outperforming the broader market.

What Triggered the Rise?

The rally came after the company disclosed updates related to GST orders and show-cause notices. Investors reacted positively as a major portion of the tax demand was dropped by the authorities.

Big GST Demand Largely Dropped

The company received an order from GST authorities in Mumbai related to the period April 2018 to March 2023, where a total demand of over ₹2,298 crore was raised earlier.

However, the adjudicating authority dropped ₹2,187.95 crore of this demand and confirmed only ₹1.10 crore, along with interest and penalty.

Smaller Tax Demand Also Under Review

Separately, a GST order from Delhi for FY22 confirmed a demand of ₹69.17 crore, including tax, interest, and penalty. The company plans to challenge both orders before the appellate authority and believes it has a strong legal case.

Read more: Zepto IPO: Rising Cash Burn Fuels Bubble Fears in India’s Costly Quick-Commerce Race.

About New India Assurance

Founded in 1919 and nationalised in 1973, New India Assurance is India’s largest government-owned general insurer. Headquartered in Mumbai, it offers insurance across motor, health, marine, aviation, and property segments in India and overseas.

Conclusion

New India Assurance shares rose as investors took comfort from the sharp reduction in a large GST demand. While smaller tax disputes remain, the relief improved sentiment around the stock.

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