ICICI Lombard General Insurance Company Limited has announced that it received an order from the Additional Commissioner, CGST & Central Excise Palghar Commissionerate, confirming a GST demand and penalty totaling about ₹1,901 crore for the period July 2017 to March 2022.
The order comprises ₹1,728.86 crore in GST and a penalty of ₹172.89 crore, along with interest under Section 50 of the CGST Act, 2017. The demand relates to industry-wide issues, including non-payment of GST on co-insurance premiums received as a follower in co-insurance arrangements and on re-insurance commissions deducted from premiums ceded to both Indian and foreign reinsurers.
ICICI Lombard highlighted that the matter had already undergone re-adjudication, and despite GST Council circulars and clarifications made during its 53rd meeting on June 22, 2024, the demand has now been confirmed. The company stated it intends to pursue an appeal or consider other legal remedies, including filing a writ petition.
The insurer further clarified that the order does not impact its financial position or operations at this stage. It also confirmed that no non-compliance issues beyond those mentioned have been identified, and the order does not involve any litigation against its key management personnel or promoters.