A tax demand of approx INR 429.05 crore from the Deputy Commissioner of State Tax, Maharashtra has been received by ICICI Prudential Life Insurance Company Ltd. ICICI Prudential in a stock filing cited that the GST demand comprises Rs 208.02 crore, Rs 200.22 crore in interest, and Rs 20.80 crore in penalties.
ICICI Prudential mentioned, “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 on the grounds of distinct alleged infractions like the reversal of input tax credit, discrepancies in ITC/credit notes in different GST returns like GSTR 3B, GSTR 9, and GSTR 2A, along with the failure to pay tax on precise outward supplies.
In its response, ICICI Prudential Life Insurance mentioned that it would file a petition. “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 expressed.
In the previous 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 company expenses surged 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.
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A lower profit has been reported by the company-VNB margin to 24% in Q1FY25 compared to 30% in the related period last year.
Meanwhile, the company’s new business premiums increased by 23.5% year-on-year to Rs 3,769 crore, compared to Rs 3,051 crore in the previous year. Its annualised premium equivalent (APE) rose by 34.4% year-on-year to Rs 1,963 crore during this period. APE is calculated as the sum of annualised first-year regular premiums plus 10% of weighted single premiums.
The solvency ratio in Q1FY25 of ICICI Prudential Life stood at 187.9 per cent against 203.4 per cent in the same period of the previous year. 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.
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