ICICI Lombard gets notice for GST of Rs. 273 crore

ICICI Lombard has received a show-cause notice from the Directorate General of GST Intelligence that has demanded Rs 273 crore in taxes.

The demand relates to GST on salvage and ineligible tax credit for motor insurance claims, as reported in a stock exchange notification. As a response, ICICI Lombard has deposited Rs 104 crore, under protest, without admitting any liability in this matter. This deposited amount has been disclosed in the company’s financial statements for FY23, under contingent liability.

The matter primarily revolves around a widespread concern about whether GST should be applied to salvage adjusted and ineligible input tax credits for motor claims that have been settled within the industry.