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Informist, Friday, Jan. 23, 2026

 

--HC stays INR 17.29-bln GST demand, INR 1.73-bln penalty on ICICI Lombard

 

NEW DELHI – The Bombay High Court has stayed the additional commissioner of central goods and services tax and central excise, Palghar commissionerate's GST demand of INR 17.29 billion and a penalty of INR 1.73 billion against ICICI Lombard General Insurance Co. Ltd. till the next date of hearing on Feb. 18. "Considering the averments as made in the petitions and after hearing the learned counsel for the parties, we are of the opinion that an ad-interim protection needs to be granted to the petitioners," the high court said.

 

The court was hearing petitions from ICICI Lombard, Aditya Birla Health Insurance Co. Ltd., Oriental Insurance Co. Ltd., SBI General Insurance Co. Ltd. and others challenging the GST department's order to confirm a tax demand on them with respect to co-insurance premium received as follower and re-insurance commission. The petitioners had said that the demand on them was against the circulars issued by the Central Board of Indirect Taxes and Customs in pursuance of a decision taken by the GST Council, which is also impleaded as a party in the case. 

 

Last year, through circulars, the government said that the apportionment of co-insurance premiums by the lead insurer to the co-insurer is treated neither as a supply of goods nor services, provided the lead insurer pays GST on the full premium.

 

The petitioners said that in six cases within the jurisdiction of Meerut, Delhi, Pune and two cases from Mumbai jurisdiction, such demands are stated to be dropped by the tax department. However, in one of the orders, a contrary approach was followed by the tax department, said the petitioners. The high court asked the tax department to file its reply to the averments made in the petition on or before Feb. 12.

 

At 1315 IST, the shares of ICICI Lombard General Insurance Co. Ltd. were almost unchanged at INR 1,825 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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