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.
ICICI Lombard added that it will be submitting its response to the SCN within the stipulated timelines.
Earlier on June 26, ICICI Prudential Life also received a notice from the Directorate General of GST Intelligence (DGGI) for not paying tax of Rs.492.06 crore for a period of five years starting from July 2017 till July 2022.
HDFC Life Insurance even made it official in June and said it received a demand notice of more than Rs 942 crore for non-payment of GST.
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HDFC Life Insurance Company received a show cause cum demand notice from the Directorate General of GST Intelligence, Mumbai Zonal Unit asking the Company to show cause why a tax of Rs 942,18,46,028 pertaining to the period July 2017 to FY 2022, should not be demanded from the Company," HDFC Life earlier said in a regulatory filing.
