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HomeNewsBusinessICICI Pru Life gets notice for GST liability of Rs 492 crore; to contest the matter

ICICI Pru Life gets notice for GST liability of Rs 492 crore; to contest the matter

In response, ICICI Prudential said it will contest the matter by following appropriate procedure. This comes as there is industry wide issue of input tax credit

June 28, 2023 / 12:33 IST
ICICI Prudential Life Insurance Comp Ltd. | CMP Rs 580.10 | ICICI Prudential Life Insurance was trading flat on June 27 morning, a day after the insurer said that it was slapped with a goods and services tax (GST) liability of Rs 492 crore. By close, the share recovered most losses and ended nearly 3 percent than the previous close. In a report released on June 27, brokerage firm CLSA gave a “buy” rating on ICICI Prudential Ltd stock with a target price of Rs 700 per share, up 20 percent from the current market price.

Unpaid taxes accumulating to Rs 492.06 crore has  drawn ICICI Prudential under glare of GST authorities.

The life insurance major has received a show-cause-cum-demand notice from the Directorate General of GST Intelligence for not paying taxes from July 2017 to July 2022.

The company said it will contest the matter by following appropriate procedure. ICICI Pru believes it was eligible for GST credit compliance as per the GST Act, 2017. The company also deposited Rs 190 crore without accepting liability in this case.

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"The company shall take appropriate steps in due course to reply to the SCN and contest the matter," ICICI Pru said in a notice to stock exchanges. "The matter largely relates to an industry-wide issue of input tax credit and the company believes that it has availed eligible input GST credit in compliance with the provisions of the Central Goods and Service Tax Act, 2017 and other applicable laws".

Moneycontrol News
first published: Jun 27, 2023 07:50 am

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