ICICI Lombard General Insurance Company , a leading player in India's insurance sector, finds itself embroiled in a significant tax dispute as it receives a substantial GST demand from tax authorities. The company is gearing up to challenge the order, which comes despite previous court directives and industry-wide resolutions.

GST Demand Details

The Additional Commissioner of CGST & Central Excise Palghar Commissionerate has issued an order to ICICI Lombard, confirming:

• A GST demand of ₹17,288.61 crore
• A penalty of ₹1,728.86 crore
• Interest under Section 50 of the CGST Act, 2017

This order covers the period from July 2017 to March 2022 and pertains to two main issues:

1. Non-payment of GST on co-insurance premium received as a follower in co-insurance transactions
2. Non-payment of GST on re-insurance commission deducted from reinsurance premium ceded to various Indian and foreign reinsurers

Industry-Wide Issue and Previous Developments

ICICI Lombard emphasizes that these are industry-wide issues that were supposedly settled by the GST Council in its 53rd meeting on June 22, 2024. The company had previously secured a favorable ruling from the Bombay High Court, which had set aside a similar order and directed the adjudicating authority to re-hear the matter in light of GST Council decisions and circulars.

Company's Response

Despite the previous court victory and the GST Council's resolutions, the tax authority has confirmed the same demand and penalty. In response, ICICI Lombard has stated its intention to:

1. Pursue an appeal against the order
2. Evaluate other appropriate actions, including the possibility of filing a writ petition

The company maintains that there is no financial impact at this stage, likely due to the ongoing nature of the dispute and the potential for further legal recourse.

Implications and Next Steps

This case highlights the ongoing challenges in interpreting and implementing GST regulations in the insurance sector. The fact that the demand persists despite industry-wide resolutions suggests potential discrepancies between policy decisions and on-ground implementation by tax authorities.

As ICICI Lombard prepares to contest this order, the outcome of this case could have significant implications not just for the company, but potentially for the entire insurance industry in India. Stakeholders will be closely watching how this unfolds, given the substantial amounts involved and the broader regulatory implications.

The company has assured its stakeholders that it will keep them informed of any developments in this matter, as required under SEBI regulations. As the situation evolves, it remains to be seen how this tax dispute will be resolved and what impact it might have on ICICI Lombard's operations and the insurance sector at large.

ICICI Lombard General Insurance Company , a prominent player in India's insurance sector, recently made headlines with a significant block trade on the National Stock Exchange (NSE). The transaction, valued at Rs. 49.66 crore, showcases notable activity in the company's shares.

Block Trade Details

The block trade involved 261,847 shares of ICICI Lombard, which were transacted at a price of Rs. 1,896.60 per share. This substantial trade underscores the continued interest in the company's stock among institutional investors and large traders.

Market Implications

Block trades of this magnitude often attract attention from market participants as they can indicate shifts in institutional holdings or significant investor interest. While the specific parties involved in this transaction remain undisclosed, such trades can sometimes influence market sentiment and trading patterns in the short term.

About ICICI Lombard

ICICI Lombard General Insurance Company is one of India's leading private sector general insurance companies. The company offers a wide range of insurance products, including:

• Motor insurance
• Health insurance
• Travel insurance
• Property insurance

These products cater to both individual and corporate clients.

This block trade reflects the ongoing market activity surrounding ICICI Lombard's shares, highlighting the company's position as a notable entity in the Indian insurance landscape.