India’s largest private sector general insurer, ICICI Lombard General Insurance Company Ltd, on Thursday (July 3) said the Bombay High Court has set aside a goods and services tax (GST) demand order of ₹1,728.86 crore issued to the company, and directed the adjudicating authority to re-hear the case in light of the GST Council’s stance and related circulars.
“We wish to inform you that the company has received a communication from its tax advisors on July 2, 2025 at 5:29 p.m. regarding the order passed by the Hon’ble Bombay High Court (Hon’ble Court) setting aside the order passed by the adjudicating authority confirming the said demand,” the company said in a stock exchange filing.
The order pertains to a previous directive from the Joint Commissioner, CGST & CX Thane Commissionerate, which had confirmed a GST demand of ₹1,901.75 crore — including a principal amount of ₹1,728.86 crore and a penalty of ₹172.89 crore — for the period between July 2017 and March 2022. The demand was based on issues affecting the insurance sector at large.
ICICI Lombard had filed a writ petition challenging the order, citing recent clarifications from the GST Council. On July 2, 2025, the company was informed by its tax advisors that the Bombay High Court had set aside the adjudication order, acknowledging that the GST Council had deliberated on the matter and issued circulars clarifying the issue.
The high court has instructed the adjudicating authority to re-evaluate the case in accordance with the council’s guidance, giving ICICI Lombard a temporary reprieve in the high-stakes tax dispute.
“The Hon’ble court has noted that the GST Council has considered the issue and also issued circulars in this regard. The hon’ble court has therefore directed the adjudicating authority to re-hear the matter in light of the decision of the GST Council and the Circulars,” it added.
Shares of ICICI Lombard General Insurance Company Ltd ended at ₹2,038.80, down by ₹5.15, or 0.25%, on the BSE.
