GST Revenue Leak: ICICI Lombard faces ₹1,728.9 crore tax demand amid ongoing investigations
GST) revenue has served ICICI Lombard with a show cause and demand notice for allegedly not paying Rs 1,728.9 crore worth of tax for five years from July 2017 till March 2022.
«The alleged demand and the impugned Show Cause Cum Demand Notice pertain to non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on re-insurance commission accepted on the reinsurance premium ceded to various Indian and Foreign reinsurance companies during the period July 2017 to March 2022,» the general insurance company said in a stock exchange filing.
The notice was served on September 27.
ICICI Lombard said the show cause cum demand notice pertains to industry-wide concerns, and following advice from its tax advisors, the company will submit a suitable response within the specified deadlines.
ET had reported in July that the Directorate General of GST Intelligence, which was investigating 30 insurance companies for alleged GST evasion, had completed the investigation into 15 of them, detecting input tax credit discrepancies to the tune of Rs 3,500 crore so far.
It is in the process of sending notices to the remaining 15, people aware of the details told ET in July. The agency had said it ll finish the probe by November.
In August, ICICI Lombard had received a show-cause notice from the Directorate General of GST Intelligence that has demanded Rs 273 crore in taxes. The demand of Rs 273 crore pertained to GST associated with salvage and ineligible tax credit related to motor insurance claims, as detailed in a stock exchange notification.
