ICICI Lombard has made a disclosure to the stock exchanges on 23 May regarding the receipt of a show cause notice from the GST Officer of the Department of Trade & Taxes, Government of N.C.T. of Delhi. The notice, delivered on 22 May 2024, under Section 73(1) of the Central Goods and Services Tax Act, 2017, pertains to clarifications sought on an alleged GST liability for the period spanning April 2019 to March 2020.
The show cause notice specifies a demand totaling Rs 1,49,55,43,768, with an additional interest amount of Rs 1,24,34,72,940 and penalty of Rs 14,95,54,377.
ICICI Lombard is required to provide clarifications on two key points: the entitlement for Input Tax Credit availed by the company and the reconciliation of values reported in monthly returns with corresponding annual return figures.
In response, ICICI Lombard has expressed its commitment to engaging with the authorities and intends to file an appropriate response within the prescribed timelines. Additionally, the company is prepared to explore legal avenues to address the show cause notice.
Recent news surrounding ICICI Lombard includes Bharti Enterprises selling 38.5 lakh shares of the insurance company at an average price of Rs 1,722.5 per share, totaling Rs 663 crore.
Financially, for the quarter ending March 2024, ICICI Lombard General Insurance reported a net profit of Rs 519 crore, marking a 19 per cent year-on-year increase compared to Rs 436 crore in the corresponding period last year.
As of 23 May, the company's scrip settled at Rs 1,663.75 apiece on the BSE, representing a 0.98 per cent increase (or Rs 16.20) compared to the previous day's close.
