A show-cause-cum-demand notice of Rs. 492 crore has been issued to ICICI Prudential Life Insurance by the Directorate General of GST Intelligence (DGGI) for an alleged GST liability. The DGGI is investigating insurance firms for malpractices and suspected GST evasion. ICICI Prudential stated that it will take appropriate steps to respond to the notice and contest the matter. The company has deposited Rs. 190 crore without accepting any liability. Other insurance firms are also under scrutiny by the DGGI for alleged malpractices and suspected GST evasion. HDFC Life Insurance has received a show-cause-cum-demand notice of Rs. 942.18 crore from the GST authority. The investigation found that ‘no service’ was involved in at least 50 vendors. The overriding commission paid to agents by HDFC Life Insurance was found to be paid through vendors under investigation. The DGGI and the income-tax department are investigating these insurance firms for alleged tax avoidance and unsubstantiated ITC claims.