The Directorate General of GST Intelligence (DGGI), the GST investigation agency, has served a Rs 1,728 crore demand notice on ICICI Lombard General Insurance for non-payment of tax in certain supplies between July 2017 and March 2022.
The insurance sector is pushing for a reduction in GST on health policies to bring more people under the insurance umbrella. There’s speculation that the GST Council is likely to reduce the GST on health policies from 18 per cent to 12 per cent or even lower.
ICICI Lombard said in a statement: “The alleged demand and the impugned show cause cum demand notice pertains to non-payment of GST on the co-insurance premium accepted as follower in case of co-insurance 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,” ICICI Lombard said.
The notice refers to matters relating to industry-wide issues, the company said, adding that it will file an appropriate response within the prescribed timelines.