ICICI Lombard gets show cause notice from DGGI 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), New Delhi, 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.

It further added, "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."

The company further mentioned that it would be filing its response against the said SCN within the prescribed timelines.

Earlier on June 26, ICICI Prudential Life Insurance Company, had received a notice from the Directorate General of GST Intelligence for not paying tax of Rs 492.06 crore for a period of five years starting from July 2017 till July 2022.

"The matter largely relates to an industry wide issue of input tax credit and the Company believes that it has availed eligible input GST credit in compliance with the provisions of the Central Goods and Service Tax Act, 2017 and other applicable laws," it had said.

Also Read: Adani Group weighs stake sale in Adani Wilmar, exiting $6 bn JV: Report

Also Read: Ananya Birla's Svatantra Microfin to acquire Sachin Bansal’s Chaitanya India Fin Cred for Rs 1,479 cr