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In an exchange filing, the company stated, “The company has received a show cause notice (SCN) dated 26 July 2023 today i.e. on 8 August 2023 from Directorate General of GST Intelligence, New Delhi alleging a tax demand of Rs 273,44,50,284 under Section 74(1) of the Central Goods and Services Tax Act, 2017 along with interest under Section 50(1) of the Act and penalty under Section 74(1) read with Section 122(2)(b) of the Act.”
The general insurer said that 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 crore under protest, without accepting any liability in this regard. 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 31 March 2023.
The insurance company said that it would be filing its response against the said SCN within the prescribed timelines.
ICICI Lombard General Insurance Company is the leading private general insurance company in the country. The company offers a comprehensive and well-diversified range of products through multiple distribution channels, including motor, health, crop, fire, personal accident, marine, engineering, and liability insurance. ICICI Lombard has 305 branches and 12,865 employees, as on 31 March 2023.
The general insurer reported 11.8% increase in net profit to Rs 390.36 crore on 14.07% rise in total income to Rs 4,538.03 crore in Q1 FY24 over Q1 FY23.
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