ICICI Lombard Faces ₹3.3 Crore GST Demand After Appeals Rejected
ICICI Lombard General Insurance Company Limited faces an aggregate GST demand of ₹3,29,83,282/- and a penalty of ₹14,78,606/- for FY2018-19. This follows the rejection of the company's appeal and allowance of the Department's appeal by the Commissioner of Customs & Central Tax (Appeals-I), Hyderabad, on September 1-2, 2026. The company plans to pursue further legal options.
The aggregate GST demand of over ₹3.3 crore, while material, is unlikely to have a significant impact on the overall financial performance of a large insurance company like ICICI Lombard, especially as it was already part of contingent liabilities. However, it represents an unfavorable legal outcome.
The company received adverse orders from the tax appellate authority, confirming a significant GST demand and penalty, and rejecting its appeal. This is a negative development for the company.
ICICI Lombard General Insurance Company Limited has received adverse orders from the Commissioner of Customs & Central Tax (Appeals-I), Hyderabad, concerning a GST demand for FY2018-19. On September 1, 2026, the appellate authority allowed the Department's appeal, overturning a relief of ₹1,81,97,223/- previously granted to the company regarding eligible input tax credit.
Subsequently, on September 2, 2026, the Commissioner Appeals-I rejected the company's own appeal, confirming an initial GST demand of ₹1,47,86,059/- and a penalty of ₹14,78,606/-. This results in an aggregate GST demand of ₹3,29,83,282/- and the aforementioned penalty for the fiscal year 2018-19.
The demand confirmation is based on grounds related to the computation of input tax credit eligible to the company and alleged undischarged tax liability due to discrepancies in filed returns. The company has stated that it will pursue further appeals or explore other legal options, including the possibility of filing a writ petition against these orders. The total demand and penalty already form part of the company's contingent liabilities, with no immediate financial impact stated at this stage.
A plain-language summary of a public exchange filing by ICICI Lombard General Insurance Company Limited. Read the original for the full detail.