LIC Faces ₹605.59 Crore GST Demand for FY 2019-20

30 Aug 2024 , 03:17 PM

Life Insurance Corporation of India (LIC), a state-owned enterprise, received a demand order from the Deputy Commissioner of State Tax, Mumbai, on Thursday, August 29, amounting to ₹605.59 Crore for the financial year 2019-20.

The demand order includes a Goods and Services Tax (GST) component of ₹294.43 Crore, interest of ₹281.71 Crore, and a penalty of ₹29.45 Crore.

The demand arises due to issues related to incorrect availment and short reversal of input tax credit (ITC), as well as interest on late payments.

LIC has been notified that this order is appealable before the Joint Commissioner of State Tax (Appeals) in Mumbai.

Despite the substantial demand, LIC has stated that there will be no significant impact on its financial performance, operations, or other activities.

LIC is a Central Public Sector life insurance company headquartered in Mumbai, and it stands as India’s largest insurance company and the largest institutional investor, managing assets worth ₹52.52 trillion (US$630 billion) as of March 2024.

The corporation operates under the ownership of the Government of India and the administrative control of the Ministry of Finance.

LIC was established on September 1, 1956, following the nationalization of the insurance industry in India through the Life Insurance of India Act, which merged over 245 insurance companies and provident societies.