Public sector life insurance company LIC i.e. Life Insurance Corporation of India has received a notice of about Rs 178 crore from the tax authorities for short payment of Goods and Services Tax (GST) for two financial years. LIC gave this information to the stock market last Tuesday. It said the company has received an order from the Additional Commissioner, Jamshedpur (Central GST and Central Excise) for interest and penalty. According to the language news, it said that the notice is for premature availing of input tax credit on ‘reverse charge’ arrangement.
GST demand, interest and penalty
According to the news, the company has received a total GST demand of Rs 161,62,33,898 from the Additional Commissioner, interest on it and penalty notice of Rs 16,16,23,390 for the financial years 2018-19 and 2019-20. In a separate communication, LIC said tax authorities have served it a notice for short payment of GST amounting to about Rs 39.39 lakh for financial year 2017-18. The public sector insurance company said it will approach the Commissioner (Appeals), Ahmedabad on March 26, 2024, against the order demanding a penalty of Rs 19,74,584 along with GST and applicable interest thereon for the financial year 2017-18. Appeal has been filed before.
LIC filed appeal against the order
In a separate communication, LIC said that an appeal has been filed against the order before the Commissioner (Appeals), Dehradun. Under the order, a penalty of Rs 38,92,592 has been demanded along with GST of Rs 3,89,25,914 and applicable interest thereon for 2017-18. Life Insurance Corporation of India (LIC) has emerged as the strongest insurance brand globally. The Brand Finance Insurance 100, 2024 report said LIC’s brand value remains stable at US$9.8 billion.
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