The Goods and Services Tax (GST) authorities have issued a demand notice of Rs 806 crore to the public sector insurance major LIC (Life Insurance Corporation). The tax demand notice has been issued by the Maharashtra State GST authorities.
The tax demand notice of Rs 806 crore was related to the alleged shortfall in GST payment for the fiscal year 2017-18 and was served on New Year's Day, January 1, 2024.
The GST demand amounts to over Rs 365 crore, comprising a penalty of over Rs 404 crore and an additional interest of Rs 36 crore.
Life Insurance Corporation of India (LIC) in regulatory filing has said that the notice was received on the basis of the following violations: “Non-Reversal of Input Tax Credit u/r 42 & 43 of CGST Rules,2017; Reversal of ITC Availed from Reinsurance; Interest on delayed payment made with GSTR-3B; Interest on Advance (Proposal Deposit) Received; Less RCM liability disclosed in GSTR-9/3B than shown by suppliers in GSTR-1.”
The State GST has asked LIC to pay an amount of Rs 3,65,02,67,702 GST, in addition to a penalty of Rs 4,04,77,06,418 and interest totaling Rs 36,50,35,206, amounting to over Rs 806 crore.
GST Penalties: J&K Fines LIC, Telangana's Notice
Earlier in October 2023, the J&K GST imposed a fine of Rs 36,844 on LIC for lower payment of taxes. The state taxes officer in Srinagar alleged that LIC had paid 12 per cent GST instead of 18 per cent on certain invoices.
Last month (December 2023), Telangana GST issued a demand notice to LIC for Rs 183 crore, inclusive of pending dues, penalty, and interest.
LIC shares
The shares of LIC on Tuesday at 10:50 am IST were trading at Rs 842.60, down by 1.88 per cent.
