ICICI Prudential Life Insurance Company received an adverse order from the Commissioner of CGST and Central Excise (Appeals-III), Mumbai, which upheld a substantial tax demand linked to the reversal of input tax credit (ITC) under the Goods and Services Tax (GST) regime. The insurer disclosed the development in a regulatory filing with stock exchanges on 19 February 2026.
The company said the appellate authority dismissed its petition and confirmed the earlier order issued under Form GST DRC-07. It received the order at 9:15 am on 19 February 2026.
The case stems from an earlier ruling by the Additional Commissioner, CGST and Central Excise, Palghar Commissionerate, Maharashtra. ICICI Prudential Life had challenged the order before the Commissioner (Appeals). With the dismissal of the appeal, the original tax demand now stands validated.
The dispute relates to the reversal of input tax credit for the period between July 2017 and July 2022, the company said in its filing.
According to the disclosure, the GST demand amounts to Rs. 492.06 crore. The appellate authority has upheld an equivalent penalty of Rs 492.06 crore. The total liability, therefore, stands at Rs 984.12 crore, excluding applicable interest.
The insurer has not indicated the immediate financial impact of the order, but is expected to evaluate legal options, which may include approaching a higher appellate forum.
The development occurs when GST authorities are conducting their most intense examinations of input tax credit claims across all industries, with financial services remaining a major area of legal disputes about credit eligibility and apportionment.