ICICI Lombard received a notice of show cause from the directorate general of GST intelligence over a tax demand of Rs 17.28,86,10,803. The show cause notice was received on September 27.
The show cause notice comes in the form of a non-payment of GST on the co-insurance premium accepted as follows in cases of coinsurance transactions and non-payment of GST on reinsurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022, the company said.
The DGGI's notice called for the company to show cause for GST amounting over Rs 1,728 crore to not be demanded and recovered under section 73 of the Central Goods and Services Tax Act 2017 and penalty under section 50 of the Act.
ICICI Lombard said that the company will file an appropriate response to the show cause notice within the 'prescribed timelines', based on the advice of its advisors.
In August too, ICICI Lombard received a DGGI notice over the non-payment of Rs 273.22 crore of tax. The ICICI Bank gets RBI's approval to raise its stake in ICICI Lombard by 4%.