LIC GST Notice: Big blow to LIC, got GST notice of Rs 806 crore, government company will file appeal

LIC GST Notice: Big blow to LIC, got GST notice of Rs 806 crore, government company will file appeal

806 Crore GST Notice:Public sector insurance company LIC has suffered a major setback in the beginning of the year 2024. The insurance company has received GST notice of Rs 806 crore. According to the notice, this includes Rs 365.02 crore GST, Rs 404.7 crore penalty and Rs 36.5 crore interest. LIC has said that it will file an appeal against this notice. 

Company gave information in regulatory filing 

Life Insurance Corporation of India has received this GST notice from the Deputy Commissioner of State Tax, Mumbai. The company said in its regulatory filing that it will file an appeal against this notice. The company is accused of violating non-reversal rules of input tax credit.

Company said- there will be no impact 

After receiving the huge GST notice, LIC said that it will file an appeal before the Commissioner in Mumbai within the stipulated time. However, the government company said that this GST notice will not have any impact on the financial, operational or any other activities of the company. This 

Notice of Rs 37 thousand crore was received in October, 2023 

Earlier in October, 2023, a GST demand order of about Rs 37 thousand crore was sent to LIC. The government company was accused of paying tax at the rate of 12 percent instead of 18 percent on some invoices during the assessment year 2019-20. The State Income Tax Officer of Srinagar had imposed GST of Rs 10462 crore, a fine of Rs 20 thousand crore and interest of Rs 6,382 crore on the company. 

Notices were also received in October and September 

Earlier also, income tax penalty notices of Rs 84 crore were sent to LIC in October and Rs 290 crore in September. On Monday, LIC shares closed 3.1 percent higher at Rs 858.35 on BSE.  

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