ICICI Prudential gets GST demand notice of ₹429 crore from Maharashtra tax authority

ICICI Prudential Life Insurance Company Ltd (ICICI Pru Life) announced that it has been issued a tax demand of ₹429.05 crore by the Deputy Commissioner of State Tax in Maharashtra, on Tuesday, August 27.

The company will challenge the GST demand notice with the Commissioner (Appeals) within the prescribed timeframe, according to the statement. In addition to the GST demand, the notice also includes interest and penalties, as noted in the post-market exchange filing.

"Please be informed that the company has received an order under Section 73 of Maharashtra GST Act, 2017 from Deputy Commissioner of State Tax, Maharashtra State, on August 26, 2024, at 8:19 p.m. for FY2020 (sic)," the company said in the filing.

The demand comprises ₹208.02 crore for Goods and Services Tax (GST), ₹200.22 crore for interest, and ₹20.80 crore for penalties. This order, issued under Section 73 of the Maharashtra GST Act, 2017, was sent to the company on August 26, 2024.

The development follows reports that GST authorities have sent notices to numerous corporate entities. A Business Standard report indicates that GST authorities have issued around 20,000 notices throughout India. These notices pertain to the assessment years 2017-18 through 2021-22 and are valued at ₹80,000 crore, according to the report.

The tax demand arises from several alleged infractions, including the reversal of input tax credit, discrepancies in ITC/credit notes across different GST returns (GSTR 3B, GSTR 9, and GSTR 2A), and failure to pay tax on certain outward supplies.

"Please further note that the company shall file an appeal against the said order before the Commissioner (Appeals) within the prescribed timelines," the company said.

ICICI Prudential Life Insurance Company Ltd's shares closed at ₹743.70 on the BSE, marking an increase of ₹20.55 or 2.84 per cent.