ICICI Prudential Life Insurance Company Limited has received a notification from the Deputy Commissioner of State Tax, Maharashtra State, demanding a massive sum of ₹1,90,22,87,884 as a tax liability for the fiscal year 2021. This amount includes a demand of ₹1,02,82,63,720 in Goods and Services Tax (GST), ₹77,11,97,791 in interest, and ₹10,28,26,373 as penalty.
The tax authority has accused the company of violating GST laws, including reversing input tax credits, not paying GST on the sale of fixed assets, and short payment of tax on advance premiums received. The company is likely to challenge the order by filing an appeal before the Commissioner (Appeals) within the prescribed timeline.
In its regulatory filing, ICICI Prudential Life Insurance Company stated that it will take necessary steps to contest the order and protect its interests. The exact reasons for the tax demand are intricate and multi-faceted, involving complex GST laws and regulations.
It is common for companies to face tax disputes, and it is crucial for them to defend their interests by taking prompt action. In this case, ICICI Prudential Life Insurance Company has an opportunity to challenge the order and resolve the matter in its favor. The outcome will depend on the company’s ability to present a strong case and demonstrate compliance with GST laws and regulations.