LIC Faces Rs 605.58 Crore GST Demand Notice

Life Insurance Corporation of India (LIC) has received a demand notice from tax authorities for short payment of GST amounting to Rs 605.58 crore for the financial year 2019-20. The notice includes interest and penalties, and the order can be appealed. LIC stated the notice will not impact its financials or operations.

The Life Insurance Corporation of India (LIC) revealed on Thursday that tax authorities have issued a demand notice of around Rs 605.58 crore for the short payment of Goods and Services Tax (GST) for the financial year 2019-20.

The corporation announced in a regulatory filing that it received a communication and demand order that includes interest and penalties for the state of Maharashtra.

LIC explained that the matter relates to the wrong availment and short reversal of Input Tax Credit (ITC) and interest on late payments. The Deputy Commissioner of State Tax, Mumbai, has issued a GST notice of Rs 294 crore with an additional interest of Rs 281 crore and a penalty of Rs 29 crore.

Despite the hefty demand, LIC clarified that there is no material impact on its financials, operations, or other activities.

(With inputs from agencies.)