LIC faces Rs 806-crore GST notice
The Life Insurance Corporation of India (LIC) has been issued a goods and services tax (GST) notice amounting to Rs 806.3 crore due to several compliance issues. The notice originated from the Maharashtra deputy commissioner of tax for the fiscal year 2017-18.
LIC intends to challenge this order through an appeal, assuring that it anticipates no significant effects on the company’s financials or day-to-day operations.
As per the filing, the insurance company disclosed receiving a combined demand order, which includes penalties, related to GST for the fiscal year 2017-18.
The demand requires payment of Rs 3,65,02,67,702 as GST, along with a penalty totaling Rs 4,04,77,06,418, and an interest charge of Rs 36,50,35,206, summing up to an excess of Rs 806 crore.
LIC identified alleged violations that triggered the notice, including “non-reversal of input tax credit u/r 42 and 43 of CGST Rules, 2017”, reversal of ITC acquired from reinsurance, interest on delayed payments recorded in GSTR-3B, interest on advances (proposal deposits) received and a discrepancy in the disclosed RCM liability in GSTR-9/3B compared to that reported by suppliers in GSTR-1.
