ICICI Lombard Share Price Dips as Second Tax Notice in Two Months Sends Shockwaves
ICICI Lombard, the renowned general insurance company, has witnessed a substantial decline in its share value, triggered by the issuance of a tax notice. The Directorate General of GST Intelligence (DGGI) has served ICICI Lombard General Insurance with a notice demanding the recovery of dues amounting to approximately Rs 1,730 crore. These dues are related to the period between July 2017 and March 2022. The company promptly disclosed this development in its exchange filing, resulting in an immediate 2.82 percent drop in its share price to Rs 1,266. While there has been a slight recovery in prices during the trading day, the stock remains notably weak, presently standing at Rs 1,279.10 (ICICI Lombard General Insurance Share Price) with a 1.77 percent decline on BSE.
ICICI Lombard’s Response: The company revealed in its exchange filing that the tax notice pertains to GST dues associated with co-insurance premium and re-insurance commission. ICICI Lombard emphasizes that these matters are subjects of ongoing industry discussions, and it intends to furnish a response within the stipulated timeframe following the guidance of its tax advisors. The Pune zone unit of DGGI has dispatched the notice to ICICI Lombard under Section 73(1) of the Central Goods and Services Tax Act, 2017, for tax dues amounting to Rs 1,728,861,0803.
Second Tax Notice in Two Months: Remarkably, ICICI Lombard has encountered its second tax-related notice within a mere two-month span. This new notice, received on September 27, closely follows the appointment of the company’s new MD and CEO, Sanjeev Mantri. The previous tax notice arrived on August 8, involving a demand of Rs 273.44 crore from DGGI, New Delhi. It revolved around GST implications concerning salvage adjustments and the ineligibility of input tax credit associated with motor claims. ICICI Lombard, at that time, deposited Rs 104,131,8970 without admitting any liability and expressed its intent to provide a detailed response.
