ICICI Lombard gets GST Demand Notice of Rs.273 crore from DGGI:

ICICI Lombard gets GST Demand Notice of Rs.273 crore from DGGI The Directorate General of GST Intelligence(DGGI) issued a tax demand notice to ICICI Lombard General Insurance for Rs.273.44 crore. The notice is connected to resolved auto insurance claims and asserts a GST Act tax demand, including interest and penalties. The Show Cause Notice demands a Rs 273.44 crore tax due under Section 74(1) of the Central Goods and Services Tax Act, 2017. In addition, the notice contains interest charges under Section 50(1) of the Act, as well as a penalty under Section 74(1) in connection with Section 122(2)(b) of the Act. The problem relates with the application of GST on salvage adjusted and ineligible input tax credit, especially on resolved motor claims. According to ICICI Lombard, this is an industry-wide problem. In response to the letter, the firm has deposited Rs.104.13 crore under protest, suggesting that it does not accept obligation for the purported tax demand. ICICI Lombard has also stated that it intends to respond to the Directorate General of GST Intelligence's show cause notice. The corporation is expected to participate in the proper legal processes to address the matter and explain its position on the tax demand. In a similar development, ICICI Prudential Life Insurance Company received a notification from the Directorate General of GST Intelligence on June 26 for unpaid tax of Rs 492.06 crore from July 2017 to July 2022. ICICI Prudential emphasised that the problem is related to a larger industry concern regarding input tax credit and expressed confidence in its compliance with the regulations of the Central Goods and Services Tax Act of 2017, as well as other applicable legislation.