ICICI Lombard Defaulted on Rs. 1,728 Crore GST, Served with Show Cause and Demand Notices

ICICI Lombard has received show cause and demand notices from the GST Authority for failing to pay Rs. 1,728.9 crore in tax, the Economic Times reported on September 27. According to the report, the company has not remitted any GST (Goods and Service Tax) for five years, from July 2017 to March 2022. The general insurance company has acknowledged this fact in its stock exchange filing.

According to the filing, the demand and the impugned Show Cause Cum Demand Notice are to non-payment of GST on the co-insurance premium received as a follower and non-payment of GST on reinsurance commission accepted.

The company accepted premium as a follower of coinsurance transactions while accepting reinsurance commission on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022.

ICICI Lombard is a general insurance company based in India. The company”s portfolio includes products in terms of general insurance, reinsurance, insurance claims management, and investment management. The company is estimated to have $217.71 billion in Gross Written Premium.

The Directorate General of GST Intelligence had stepped up a probe with 30 insurance companies alleged to have evaded GST.

As the investigation is half-completed, authorities have compiled evidence for tax credit inconsistencies worth approximately Rs. 3,500 crore, the report said. The department is preparing to send notices to the other 15 firms as well and is planning to complete the investigation by November.

ICICI Lombard had been served a show-cause notice by the Directorate General of GST Intelligence in August, urging them to pay a sum of Rs. 273 crores as tax liability. Moreover, the general insurance company also disclosed that it secured a demand notice dated May 29, 2023, for a sum of Rs. 94.14 crore.