LIC Faces Tax Demand Worth Rs 178 Crore for GST Short Payment
The Life Insurance Corporation of India (LIC) revealed on Tuesday that tax authorities have issued a demand notice amounting to approximately Rs 178 crore for the underpayment of Goods and Services Tax (GST) over two financial years.
According to a regulatory filing by LIC, the company has received a communication/demand order for interest and penalty from the Additional Commissioner of Central GST & Central Excise in Jamshedpur. The demand notice pertains to the premature availment of Input Tax Credit under the reverse charge mechanism.
The GST demand, totaling Rs 161,62,33,898, along with applicable interest and a penalty notice of Rs 16,16,23,390, is for the financial years 2018-19 and 2019-20.
Furthermore, LIC disclosed in a separate filing that tax authorities have issued a demand notice of about Rs 39.39 lakh for GST underpayment for the fiscal year 2017-18.
LIC has taken action by filing an appeal against the order demanding GST of Rs 19,64,584 for FY 2017-18, along with applicable interest and a penalty of Rs 19,74,584 before the Commissioner (Appeals) in Ahmedabad on March 26, 2024.
Additionally, LIC stated in another filing that an appeal has been lodged before the Commissioner (Appeals) in Dehradun against the order demanding GST of Rs 3,89,25,914 for the fiscal year 2017-18, alongside applicable interest and a penalty of Rs 38,92,592.
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