New Delhi: ICICI Lombard General Insurance Company has received a goods and services tax (GST) demand of ₹271 crore from the Rajasthan tax department for the financial year 2021–22, the insurer said in a regulatory filing on Thursday.
The order was issued by the Deputy Commissioner of State Tax, Business Audit Wing-III-A, Rajasthan, Jaipur, under Section 73 of the Central and Rajasthan GST Acts, raising a tax demand of ₹145 crore, interest of ₹111 crore and a penalty of ₹15 crore.
According to the company, the demand primarily arises from issues related to the computation of input tax credit eligible to ICICI Lombard and alleged undischarged tax liability due to differences in the methodology of reporting debit and credit notes between GSTR-1 and GSTR-9 returns.
In its disclosure to stock exchanges, ICICI Lombard said it would pursue an appeal and evaluate other legal options, including the filing of a writ petition, against the order. The insurer added that there is no impact on its financials at this stage, as the matter is under dispute.
The latest order adds to a growing list of GST-related demands faced by insurers and financial services companies, as tax authorities intensify audits and scrutiny over ITC eligibility and return reconciliations for earlier assessment years.