Bombay HC Halts GST Demands on Insurers, Big Relief for ICICI Lombard
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Moneycontrol•23-01-2026, 20:29
Bombay HC Halts GST Demands on Insurers, Big Relief for ICICI Lombard
- •Bombay High Court has temporarily stayed GST demands worth crores on multiple insurance companies, including ICICI Lombard, regarding co-insurance premiums.
- •The court granted ad-interim protection, stating the petitions raise common legal and factual questions, with the next hearing scheduled for February 18.
- •Insurers argued that internal premium-sharing arrangements are not a sale or service under GST law, citing CBIC circulars from October 2024 and January 2025 that clarify such transactions are not taxable.
- •The dispute centers on GST authorities demanding 18% GST on premiums shared between co-insurers and reinsurance commissions, despite GST already being paid on the full premium collected from customers.
- •The case involves significant amounts, with ICICI Lombard alone facing demands exceeding Rs 17,000 crore, and the final High Court decision is expected to provide clarity for the entire insurance sector.
Why It Matters: Bombay HC's interim stay on GST demands offers crucial, albeit temporary, relief to insurers like ICICI Lombard.
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