ICICI Lombard receives ₹1,901 crore GST demand for July 2017–March 2022, plans appeal

Private sector non-life player ICICI Lombard General Insurance Company Limited, on Tuesday (September 30), said it has received an order from the Additional Commissioner, CGST & Central Excise Palghar Commissionerate, confirming a GST demand and penalty together amounting to about ₹1,901 crore, along with interest under Section 50 of the CGST Act, 2017, for the period July 2017 to March 2022.

The demand comprises ₹1,728.86 crore of GST and a penalty of ₹172.89 crore. The order pertains to industry-wide issues, including non-payment of GST on co-insurance premiums received as a follower in co-insurance transactions and on re-insurance commissions deducted from premiums ceded to Indian and foreign reinsurers.

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The matter had been previously re-adjudicated, and despite circulars issued by the GST Council and the Council’s 53rd meeting on June 22, 2024, the order confirms the demand. ICICI Lombard stated it will pursue an appeal or evaluate other appropriate actions, including filing a writ petition.

The company clarified that the order has no impact at this stage on its financial position or operations. It also noted that there are no non-compliances identified beyond the matters mentioned, and the communication does not involve any litigation against key management personnel or promoters.

Shares of ICICI Lombard General Insurance Co Ltd ended at ₹1,884.85, down by ₹20.00, or 1.05%, on the BSE.



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