ICICI Lombard General Insurance has received a tax demand notice from the Directorate General of GST Intelligence for a sum of ₹273.44 crore. The notice is related to settled motor insurance claims and alleges a tax demand under the GST Act, including interest and penalty.
The issue revolves around the applicability of GST (Goods and Services Tax) on salvage adjusted and ineligible input tax credit, specifically on motor claims that have been settled. ICICI Lombard has stated that it considers this to be an industry-wide issue. In response to the notice, the company has deposited ₹104.13 crore under protest, indicating that it is not accepting liability for the alleged tax demand.
ICICI Lombard has also mentioned its intention to file a response to the show cause notice from the Directorate General of GST Intelligence. It is likely that the company will engage in the necessary legal procedures to address the issue and clarify its position regarding the tax demand.
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