ICICI Lombard gets Show Cause Notice from DGGI for not paying ₹273.44 crore in Taxes

New Delhi(India), 09/08/23: The Directorate General of GST Intelligence (DGGI), New Delhi, issued a notice to ICICI Lombard General Insurance on Tuesday for failing to pay ₹273.44 crore.

The Show Cause Notice (SCN) alleges a ₹273.44 crore tax due under Section 74(1) of the Central Goods and Services Tax Act, 2017, with interest charges under Section 50(1) of the Act and a penalty under Section 74(1) in connection with Section 122(2)(b) of the Act.

The company stated in a regulatory filing, “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.”

They 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 corporation also stated that it would respond to the aforementioned SCN within the timeframes specified.

Previously, on June 26, ICICI Prudential Life Insurance Company received a warning from the Directorate General of GST Intelligence for failing to pay tax of Rs 492.06 crore over a five-year period beginning in July 2017 and ending in July 2022.

The company also stated, “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.”