LIC Issued a Notice Demanding Rs 663 Crore due to GST Underpayment

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LIC Issued a Notice Demanding Rs 663 Crore due to GST Underpayment
  • By Divya Singhal
  • 08th January, 2024
  • Banking

In a notable announcement on Wednesday, the Life Insurance Corporation of India (LIC) disclosed that the tax authorities have issued a demand notice amounting to approximately Rs 663.45 crore, citing a shortfall in Goods and Services Tax (GST) payments.

This notification, encompassing interest and penalties, emanated from the Office of the Commissioner of CGST & Central Excise, Chennai North Commissionerate, on January 1, as affirmed by LIC in a regulatory filing.

The demand primarily stems from an erroneous claim of Input Tax Credit (ITC) and the omission of tax payment on a turnover erroneously categorized as a non-GST supply in GSTR-1 for the fiscal years 2017-18 and 2018-19, elucidated the company.

Asserting its stance, LIC conveyed its intention to contest the order by filing an appeal before the Commissioner (Appeals), Chennai.

Crucially, LIC assured stakeholders that this development holds no substantial sway on its financials, operations, or other corporate endeavors.

In a parallel development on Tuesday, the company faced another demand order, this time concerning Telangana state, amounting to Rs 116 crore for GST shortfall during the fiscal year 2017-18.

This demand in Telangana materialized one day after LIC, on January 1, was served a comparable notice for approximately Rs 806 crore, addressing GST underpayment for 2017-18, coupled with interest and penalties applicable to Maharashtra.

This nuanced disclosure underscores the intricate dynamics of regulatory engagements and tax compliance in the corporate landscape. Despite these fiscal intricacies, LIC remains resolute, navigating the legal terrain to challenge adverse decisions and maintaining its commitment to financial stability and integrity.

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