ICICI Lombard gets show cause notice for not paying Rs 273.44 crore tax

ICICI Lombard General Insurance on Tuesday received a notice dated July 26, 2023, from the Directorate General of GST Intelligence (DGGI) for not paying Rs 273.44 crore. The Show Cause Notice (SCN) alleges a tax liability of Rs 273.44 crore under Section 74(1) of the Central Goods and Services Tax Act, 2017, accompanied by interest charges under Section 50(1) of the Act, and a penalty under Section 74(1) in conjunction with Section 122(2)(b) of the Act.

"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," the company said in a regulatory filing.

"Such amount deposited has been disclosed by way of Notes to Contingent Liability in the Financial Statements of the Company for the financial year ended March 31, 2023," it said.