ICICI Prudential Life Insurance gets a Rs 429 cr GST demand notice from Maha govt
In a stock filing, ICICI Prudential said the GST demand includes Rs 208.02 crore, Rs 200.22 crore in interest, and Rs 20.80 crore in penalties.
- Aug 27, 2024,
- Updated Aug 27, 2024 8:28 PM IST
ICICI Prudential Life Insurance Company Ltd has received a tax demand of Rs 429.05 crore from the Deputy Commissioner of State Tax, Maharashtra. In a stock filing, ICICI Prudential said the GST demand includes Rs 208.02 crore, Rs 200.22 crore in interest, and Rs 20.80 crore in penalties. The order, issued under Section 73 of the Maharashtra GST Act, 2017, was communicated to the company on August 26, 2024.
ICICI Prudential stated: "Please be informed that the company has received an order under Section 73 of Maharashtra GST Act, 2017 from Deputy Commissioner of State Tax, Maharashtra State, on August 26, 2024, at 8:19 p.m. for FY2020 (sic)."
The tax demand is based on various alleged violations such as the reversal of input tax credit, discrepancies in ITC/credit notes in different GST returns like GSTR 3B, GSTR 9, and GSTR 2A, as well as failure to pay tax on specific outward supplies.
ICICI Prudential Life Insurance, in reply, said it will file an appeal. "Please further note that the company shall file an appeal against the said order before the Commissioner (Appeals) within the prescribed timelines," the insurance company said.
Shares of ICICI Prudential Life Insurance Company Ltd closed at Rs 743.70, up by 2.84% on the BSE.
Last month, ICICI Prudential Life reported an 8.7 per cent year-on-year (Y-o-Y) increase in net profit to Rs 225.4 crore in the April-June quarter of FY25 (Q1FY25) owing to a rise in expenses. The expenses of the company rose by 32.8 per cent to Rs 198.53 crore in the quarter under review as compared to Rs 149.47 crore in Q1 FY24.
The company reported a contraction in the measure of profitability—VNB margin to 24 per cent in Q1FY25 compared to 30 per cent in the corresponding period last year.
Meanwhile, the company’s new business premiums grew by 23.5 per cent Y-o-Y to Rs 3,769 crore, against Rs 3,051 crore in the year-ago period. Its annualised premium equivalent (APE) was up 34.4 per cent Y-o-Y to Rs 1,963 crore during this period. APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums.
In Q1FY25, the solvency ratio of ICICI Prudential Life stood at 187.9 per cent against 203.4 per cent in the year-ago period. The persistency ratio of the insurer remained healthy with the 13th-month persistency ratio at 86.4 per cent while the 61st-month ratio stood at 67.3 per cent in the quarter under review.
ICICI Prudential Life Insurance Company Ltd has received a tax demand of Rs 429.05 crore from the Deputy Commissioner of State Tax, Maharashtra. In a stock filing, ICICI Prudential said the GST demand includes Rs 208.02 crore, Rs 200.22 crore in interest, and Rs 20.80 crore in penalties. The order, issued under Section 73 of the Maharashtra GST Act, 2017, was communicated to the company on August 26, 2024.
ICICI Prudential stated: "Please be informed that the company has received an order under Section 73 of Maharashtra GST Act, 2017 from Deputy Commissioner of State Tax, Maharashtra State, on August 26, 2024, at 8:19 p.m. for FY2020 (sic)."
The tax demand is based on various alleged violations such as the reversal of input tax credit, discrepancies in ITC/credit notes in different GST returns like GSTR 3B, GSTR 9, and GSTR 2A, as well as failure to pay tax on specific outward supplies.
ICICI Prudential Life Insurance, in reply, said it will file an appeal. "Please further note that the company shall file an appeal against the said order before the Commissioner (Appeals) within the prescribed timelines," the insurance company said.
Shares of ICICI Prudential Life Insurance Company Ltd closed at Rs 743.70, up by 2.84% on the BSE.
Last month, ICICI Prudential Life reported an 8.7 per cent year-on-year (Y-o-Y) increase in net profit to Rs 225.4 crore in the April-June quarter of FY25 (Q1FY25) owing to a rise in expenses. The expenses of the company rose by 32.8 per cent to Rs 198.53 crore in the quarter under review as compared to Rs 149.47 crore in Q1 FY24.
The company reported a contraction in the measure of profitability—VNB margin to 24 per cent in Q1FY25 compared to 30 per cent in the corresponding period last year.
Meanwhile, the company’s new business premiums grew by 23.5 per cent Y-o-Y to Rs 3,769 crore, against Rs 3,051 crore in the year-ago period. Its annualised premium equivalent (APE) was up 34.4 per cent Y-o-Y to Rs 1,963 crore during this period. APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums.
In Q1FY25, the solvency ratio of ICICI Prudential Life stood at 187.9 per cent against 203.4 per cent in the year-ago period. The persistency ratio of the insurer remained healthy with the 13th-month persistency ratio at 86.4 per cent while the 61st-month ratio stood at 67.3 per cent in the quarter under review.