ICICI Prudential Faces ₹429 Crore GST Demand, Plans Appeal

28 Aug 2024 , 02:56 PM

ICICI Prudential Life Insurance has received a tax demand of ₹429.05 Crore from the Maharashtra State Tax department. This demand includes ₹208.02 Crore for GST, ₹200.22 Crore in interest, and ₹20.80 Crore in penalties.

The order, issued under Section 73 of the Maharashtra GST Act, 2017, was communicated to ICICI Prudential on August 26, 2024.

The demand cites alleged violations such as improper reversal of input tax credit, discrepancies in GST returns (GSTR 3B, GSTR 9, and GSTR 2A), and failure to pay tax on certain supplies.

ICICI Prudential plans to appeal the order. They stated, “The company will file an appeal against the order before the Commissioner (Appeals) within the required timelines.”

At the time of writing, shares of ICICI Prudential Life Insurance is trading at ₹743.95 which is a 0.029% dip than the previous close. ICICI Prudential Life Insurance has witnessed a 35% gain since the beginning of the year, and 39% gain since the beginning of the year.

The company reported an 8.7% increase in net profit for Q1FY25, reaching ₹225.4 Crore despite a 32.8% rise in expenses.

New business premiums grew 23.5% YoY to ₹3,769 Crore, while the annualized premium equivalent (APE) increased by 34.4% YoY to ₹1,963 Crore. The solvency ratio for Q1FY25 was 187.9%, down from 203.4% a year earlier, with a strong persistency ratio of 86.4% for the 13th month and 67.3% for the 61st month.