INDIA · LAW & PUBLIC SAFETY
ICICI Prudential Life appeal dismissed, GST tax demand upheld
Economic Times
19 Feb · 11:50 PM
Change
A Mumbai CGST & Central Excise (Appeals) commissioner dismissed ICICI Prudential Life’s appeal on Thursday, sustaining a Rs 9.84 billion GST input-tax-credit reversal demand for July 2017–July 2022.
Why it matters
The appellate order upheld the demand raised under Form GST DRC-07 tied to reversal of input tax credit under GST for July 2017–July 2022. The quantified exposure disclosed is Rs 4.92 billion in GST dues plus an equal Rs 4.92 billion penalty, with interest applicable, totaling Rs 9.84 billion. With the appeal dismissed, the demand remains enforceable unless modified by a higher authority. The company stated it will pursue a further appeal, extending the timeline uncertainty around final liability recognition and cash outflow risk. The case spotlights how GST ITC positions can translate into large, multi-year assessments for regulated financial firms.
Implications
- • Rs 9.84bn tax+penalty exposure remains active, with interest accruing
- • Higher litigation and compliance burden until next appellate outcome
- • Potential cash outflow timing uncertainty tied to enforcement/appeal process
- • Greater scrutiny risk on GST ITC reversal positions in insurance sector
Who is affected
- • ICICI Prudential Life Insurance Company Ltd
- • Life insurers with GST input tax credit positions
- • GST compliance, tax, and finance teams in financial services firms
- • Investors tracking contingent liabilities in listed insurers
Source
Read original → Economic Times
Topics
Law & Public Safety Regulatory Actions Compliance Finance & Banking Insurance