ICICI Lombard responds to GST notice, alleging tax demand of ₹273 crore; check here
1 min read 09 Aug 2023, 12:06 PM ISTICICI Lombard General Insurance has received a GST show-cause notice for tax demand of ₹273.4 crore.
PremiumICICI Lombard General Insurance Company Limited has received a Goods and Services Tax (GST) show-cause notice, alleging a tax demand of ₹273.4 crore along with interest, the company informed the BSE.
On August 8, ICICI Lombard received a Show Cause Notice (SCN) dated July 26 from the Directorate General of GST Intelligence in New Delhi. The notice alleges a tax demand of ₹273,44,50,284 under Section 74(1) of the Central Goods and Services Tax (CGST) Act, 2017, along with interest under Section 50(1) of the Act and a penalty under Section 74(1) read with Section 122(2)(b) of the Act.
Also Read: ICICI Bank gets RBI's nod to raise stake in ICICI Lombard. Details here
This issue primarily revolves around an industry-wide concern regarding the applicability of GST on salvage-adjusted and ineligible Input Tax Credit for motor claims settled. The Company, without accepting liability, has deposited ₹104,13,18,970 under protest.
This deposited amount has been disclosed in the Financial Statements of the Company for the fiscal year ending March 31, 2023, under Notes to Contingent Liability, the company said in its statement.
ICICI Lombard has said that it would be "filing its response against the said SCN within the prescribed timelines".
RBI approval
The ICICI Bank earlier received approval from the Reserve Bank of India (RBI) to increase its ownership in ICICI Lombard General Insurance Company Limited, one of its subsidiaries.
Also Read: ICICI Lombard's first quarter results: Net profit up 12%, gross premium income up 20%
The central bank of India has granted permission to ICICI Bank to gradually raise its stake in ICICI Lombard by a maximum of 4%, spread across multiple phases.
The private lender has duly informed the Indian stock market exchanges regarding the RBI's endorsement of its plan to augment its share in the subsidiary. It's important to note that this approval is contingent upon the fulfillment of specific regulatory prerequisites.
