ICICI Prudential Faces Uphill Battle with GST Order

ICICI Prudential Life Insurance received an order from the GST Commissioner (Appeals) affirming a tax demand of Rs 3.67 crore related to service tax credit issues from the 2017-2018 fiscal year. The company plans to appeal the decision, which includes a GST liability and penalty.

ICICI Prudential Life Insurance is embroiled in a tax dispute following an order from the GST Commissioner (Appeals) that upheld a tax demand totaling Rs 3.67 crore. This matter traces back to a decision by the Central Goods and Service Tax (CGST) authorities in Mumbai, dated July 2, 2024, which concerned service tax credit transitions during the 2017-2018 fiscal year.

The order in question rejected a portion of service tax credits that ICICI Prudential sought to migrate into the GST regime when it was introduced. The tax demand not only includes a GST liability of Rs 1.83 crore but also imposes a penalty of the same amount.

In response to the ruling, ICICI Prudential Life Insurance has expressed its intention to contest the order by filing an appeal with a higher authority. This development was confirmed through a regulatory filing, as the company braces for a legal challenge against the financial imposition.

(With inputs from agencies.)