ICICI Lombard General Insurance Company Ltd. has received a show cause notice from the Directorate General of GST Intelligence (DGGI) regarding non-payment of a tax demand of ₹1,728.90 crore. The notice is related to the non-payment of Goods and Services Tax (GST) for the period from July 2017 to March 2022. Specifically, the demand pertains to non-payment of GST on co-insurance premium and re-insurance commission.
ICICI Lombard has stated that it will respond to the notice within the prescribed timeline. The company mentioned that the notice pertains to industry-wide issues, and they will provide an appropriate response based on the advice of their tax advisors.
In August, the company had also received a notice for non-payment of ₹273.4 crore in taxes along with interest.
It's worth noting that ICICI Bank, the parent company of ICICI Lombard, recently obtained approval from the Reserve Bank of India (RBI) to increase its ownership stake in ICICI Lombard. The regulator has permitted ICICI Bank to gradually raise its stake in the insurance subsidiary by up to 4% in tranches.
As of the time of the report, ICICI Lombard's shares were down 1.5% at ₹1282.70 on the BSE (Bombay Stock Exchange).