ICICI Lombard has received a show cause notice from the Directorate General of GST Intelligence (DGGI) over a tax demand of Rs 17,28,86,10,803 (over Rs 1,728 crore). The show cause notice was received on September 27.
The show cause notice pertains to “non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on reinsurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022”, the company stated in a filing.
The DGGI’s notice required the company to show cause as to why GST amounting over Rs 1,728 crore should not be demanded and recovered under Section 73(1) of the Central Goods and Services Tax Act, 2017, along with interest under Section 50 of the Act and penalty under Section 73(1) of the CGST Act, 2017.
ICICI Lombard stated that the company will file an appropriate response to the show cause notice within the “prescribed timelines”, based on the advice of its advisors.
In August too, ICICI Lombard had received a DGGI notice over non-payment of Rs 273.22 crore of tax. “The matter largely relates to an industry wide issue on applicability of GST on salvage adjusted and ineligible Input Tax Credit, on motor claims settled. The company has deposited an amount of Rs 104,13,18,970 under protest, without accepting any liability in this regard,” it had then said in a regulatory filing.
Meanwhile in July, ICICI Prudential Life Insurance Company had received a notice from DGGI for not paying tax Rs 492.06 crore for a period of five years starting from July 2017 till July 2022.
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