ICICI Lombard General Insurance Company Limited, one of India's leading general insurance providers, has disclosed the receipt of a GST demand order from the Assistant Commissioner of Central Tax, Ameerpet GST Division, Hyderabad GST Commissionerate. The order raises concerns over tax compliance for the period July 2017 to March 2018, and demands a total amount of ₹5.07 crore.

The financial demand comprises:

1. GST demand: ₹2,41,82,080/-
2. Interest: ₹1,47,485/-
3. Penalty: ₹2,64,01,686/-

Nature of the Order

The order, issued under Section 74 of the Central Goods and Services Tax Act, 2017, outlines several alleged discrepancies:

• Input Tax Credit (ITC): Computation of eligible ITC claimed by the company was challenged.
• Interest liability: Allegations of undischarged interest on delayed tax payments.
• Tax liability differences: Discrepancies between returns filed by the company and reconciliations as per the GST framework.

Timeline of the Notice

• Date of receipt: November 21, 2024, at 2:00 p.m.
• Authority: Assistant Commissioner of Central Tax, Ameerpet GST Division.

Financial and Operational Impact

The demand, amounting to ₹5.07 crore, could temporarily impact ICICI Lombard’s cash flows if upheld. However, the company has assured stakeholders that it will pursue an appeal before the Appellate Authorities or evaluate other legal remedies to contest the order.

ICICI Lombard’s Response

In a statement addressed to the stock exchanges, ICICI Lombard emphasized its commitment to legal compliance and reiterated its intention to challenge the order using all available legal frameworks. The company’s approach underscores its confidence in resolving the matter in its favor.

Regulatory Disclosure

The notice was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders. The information is also accessible on ICICI Lombard's website.

Conclusion

This GST demand adds to the growing regulatory scrutiny faced by large organizations in India regarding indirect tax compliance. While the outcome remains uncertain, ICICI Lombard's proactive stance and transparent disclosures highlight its commitment to governance and shareholder confidence.

For more updates on the matter, visit the company’s official website or contact their customer support at customersupport@icicilombard.com.

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