GST Notice issued to ICICI Lombard for non-payment of GST over Rs.1,728 Crore

The Directorate General of GST Intelligence (DGGI) has issued a show cause notice to ICICI Lombard for a tax demand of Rs 17,28,86,10,803 (over Rs 1,728 crore). The show cause notice was delivered on September 27.

The notice of cause relates 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″ , according to the filing.

The DGGI’s notice demanded that the company show cause why GST in excess of 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.

According to ICICI Lombard, it will file an appropriate response to the show cause notice within the “prescribed timelines” based on the advice of its advisors.

ICICI Lombard was also served with a DGGI notice in August for failing to pay Rs.273.22 crore in taxes. “The issue is largely about an industry-wide issue concerning the applicability of GST on salvage adjusted and ineligible Input Tax Credit on motor claims settled. The company has deposited Rs 104,13,18,970 under protest, without accepting any liability in this regard,” it said in a regulatory filing at the time.

Meanwhile, in July, DGGI issued a notice to ICICI Prudential Life Insurance Company for failing to pay tax of Rs.492.06 crore over a five-year period beginning in July 2017 and ending in July 2022.