ICICI Lombard has received a significant interim relief concerning a prior GST demand order valued at over ₹31.18 crore (plus interest and penalty) relating to service taxability for SEZ units. The Hon’ble Bombay High Court issued an order on March 26, 2026, granting a complete stay on the impugned order until the final disposal of the Writ Petition filed by the company. The Revenue has been granted four weeks to submit its formal reply.
Update on Prior Tax Dispute Disclosure
ICICI Lombard General Insurance Company Limited has provided an update regarding a material event previously disclosed on January 30, 2025. This initial intimation concerned the receipt of an order from the CGST & Central Excise authorities, Palghar Commissionerate, demanding GST under Section 74 of the CGST Act, 2017. The total demand, including interest and a penalty, amounted to approximately ₹62.37 crore (comprising a principal demand of ₹31,18,41,716/- and an equal penalty).
High Court Intervention and Stay Granted
The dispute involves industry-wide matters concerning the applicability of GST on insurance supplies (Group Health/Personal Accident policies) made to units located within a Special Economic Zone (SEZ). Following the challenge filed by the company, the Hon’ble Bombay High Court issued an order on March 26, 2026. The company received confirmation of this order on March 28, 2026.
The material content of the High Court’s order is the granting of a stay on the impugned order until the final disposal of the Writ Petition. The Court has also granted the Revenue a period of four weeks to file their official reply to the petition.
Period and Financial Impact
The disputed tax period covered by the original demand spans from July 2017 to March 2024. Regarding the financial implications of this development, the company currently assesses that there is No impact at this stage, as the demand remains stayed by the court order.
Source: BSE
