ICICI Lombard General Insurance Company Ltd. has been issued a show cause notice by the Directorate General of GST Intelligence (DGGI) for a tax demand amounting to ₹1,728.80 crore. This notice pertains to the period between July 2017 and March 2022, specifically regarding non-payment of GST on co-insurance premium and re-insurance commission. In response, ICICI Lombard has committed to providing a fitting response within the stipulated timeframe.
In a recent filing to the stock exchanges, ICICI Lombard emphasized that the show cause cum demand notice addresses industry-wide issues. The company plans to formulate a comprehensive response with guidance from its tax advisors, ensuring it adheres to the prescribed timeline for submission.
Earlier in August, the company had received a notice for non-payment of ₹273.4 crore in taxes along with interest. Despite this, ICICI Lombard reported a 12% year-over-year increase in net profit to ₹390.4 crore for the quarter ending in June.
In a related development, ICICI Bank secured approval from the Reserve Bank of India (RBI) to augment its ownership in ICICI Lombard, its subsidiary. The RBI has granted permission for a gradual increase of up to 4% in tranches, enabling the bank to strengthen its stake in the insurance company.
As of 11:07 am, ICICI Lombard shares were down by 1.5% at ₹1282.70 on the BSE.
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