LIC served with Rs 806 crore GST notice from Maharashtra, plans to challenge order

2 Jan 2024 , 10:06 AM

The Maharashtra deputy commissioner of state tax issued a GST notice of Rs 806.3 crore to the state-owned Life Insurance Corporation of India for numerous compliance-related issues in the fiscal year 2017-18.

The demand notice contains Rs 365.02 crore in GST dues, Rs 404.7 crore in penalties, and Rs 36.5 crore in interest payments.

According to GST officials, LIC violated many laws, including the non-reversal of input tax credit under CGST rules 37 and 38 and the reversal of input tax credit obtained through reinsurance.

Furthermore, GST authorities applied interest to the dues as a result of late payment with GSTR-3B and interest on advance received. In addition, LIC declared less reverse charge mechanism (RCM) liability as compared to what is shown by its suppliers.

LIC intends to submit an appeal to the commissioner against the order. The insurer stated in a regulatory statement that there would be no meaningful impact on the company’s financials, operations, or other activities.

On September 22, the corporation got a Goods and Services Tax receipt of over Rs 290 crore from Bihar state tax officials, comprising a tax demand of Rs 166.75 crore, interest of Rs 107.05 crore, and a penalty of Rs 16.67 crore.

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