The demand notice includes Rs 365.02 crore of GST dues to be paid, Rs 404.7 crore of penalty and an interest payment of Rs 36.5 crore.
In October 2023, the GST authorities imposed a fine of Rs 36,844 on LIC for lower payment of taxes.
State-owned Life Insurance Corporation of India received a GST notice of Rs 806.3 crore from the Maharashtra deputy commissioner of state tax for various compliance-related shortcomings in FY 2017-18.
The demand notice includes Rs 365.02 crore of GST dues, Rs 404.7 crore of penalty, and an interest payment of Rs 36.5 crore.
LIC did not observe various rules, such as the non-reversal of input tax credit according to the CGST rules 37 and 38 and the reversal of input tax credit availed from reinsurance, according to the GST officials.
Additionally, GST authorities added interest to the dues as a result of delayed payment made with GSTR-3B and interest on advance received. LIC also disclosed less reverse charge mechanism (RCM) liability than shown by its suppliers.
LIC will file an appeal before the commissioner against the order. In a regulatory filing, the insurer noted that there would be no material impact on financials, operations or other activities of the company.
This move comes among the various GST notices LIC has received from states across the country.
The company received a Goods and Services Tax receipt, including interest and penalty, of over Rs 290 crore from Bihar state tax officials on September 22, including a tax demand of Rs 166.75 crore, an interest of Rs 107.05 crore and a penalty of Rs 16.67 crore.
In October 2023, the GST authorities imposed a fine of Rs 36,844 on LIC for lower payment of taxes. The insurer had received a communication/ demand order for collection of GST, along with interest and penalty for Jammu & Kashmir state, LIC said in a regulatory filing.
As per the October 9, 2023 notice by the state taxes officer at Srinagar, LIC paid 12 percent GST, instead of 18 percent on certain invoices.
The insurer was also slapped with a GST notice on December 11 from the Telangana arm of the taxation authority of Rs 183 crore, which includes pending dues, penalty and interest.
The "demand order-cum-penalty notice" for 2017-18 has asked the state-run insurer to cough up Rs 81.2 crore in the form of pending GST dues, along with a penalty of Rs 93.2 crore and interest of Rs 8.1 crore.
