• Notification Date: 02-07-2023
• Notification No: N/A

ICICI Prudential Shares in Focus as Insurer gets Rs 492-crore GST Notice

Shares of ICICI Prudential Life Insurance Company Ltd were in focus today after the insurance firm said it received a show cause cum demand notice (SCN) for a goods and services tax (GST) liability of Rs 492 crore. 

Stock of ICICI Prudential Life was trading flat at Rs 566.90 against the previous close of Rs 563.70 on BSE. Total 0.28 lakh shares of the firm changed hands amounting to a turnover of Rs 1.55 crore on BSE. Market cap of the firm stood at Rs 81,568 crore. The stock hit a 52-week low of Rs 380.95 on March 16, 2023 and a 52-week high of Rs 608.65 on September 2, 2022. 

The share has gained 15% in a year and risen 25% this year. 

In terms of technical, the relative strength index (RSI) of the stock stands at 74.9, signalling it's trading in the overbought zone. ICICI Prudential shares have a beta of 1, indicating average volatility in a year. Shares of ICICI Prudential shares are trading higher than the 5-day, 20-day, 50-day, 100 day and 200 day moving averages. 

“The company has received a show cause cum demand notice (SCN) from the Directorate General of GST Intelligence (DGGI), asking the Company to show cause as to why a tax of Rs. 492,06,48,296/- (Rupees Four Hundred Ninety-Two Crores Six Lakhs Forty-Eight Thousand Two Hundred Ninety-Six only) pertaining to the period July 2017 to July 2022 should not be demanded from the Company,” said the insurer. 

ICICI Prudential is the second insurance firm to get a GST demand notice in recent days. Last week, HDFC Life Insurance received a demand notice for Rs 942 crore. 

ICICI Prudential said it would contest the matter. The company said it was eligible for GST credit compliance as per the GST Act, 2017. The company also deposited Rs 190 crore without accepting liability in the case. 

"The company shall take appropriate steps in due course to reply to the SCN and contest the matter," ICICI Prudential told stock exchanges. 

"The matter largely relates to an industry-wide issue of input tax credit and the company believes that it has availed eligible input GST credit in compliance with the provisions of the Central Goods and Service Tax Act, 2017 and other applicable laws,” it said.