Tag: LiC GST NOTICE

Impact of ₹57.2 Crore Tax Notice on LIC: What to Know

Life Insurance Corporation of India Faces Tax Demand of Rs 57.2 Crore

Life Insurance Corporation of India (LIC) announced on Monday that it has received a demand notice of approximately Rs 57.2 crore from the tax authorities for excess Input Tax Credit (ITC) availed during the financial year 2020-21. The communication, issued by the Assistant Commissioner in Delhi, addresses the alleged excess ITC claimed by the company.

According to a regulatory filing by LIC, the demand is broken down into three components: Goods and Services Tax (GST) amounting to Rs 31.04 crore, interest of Rs 23.13 crore, and a penalty of Rs 3.10 crore. Despite the significant sum, LIC assured that the demand would not have any material impact on its financials, operations, or other activities.

The corporation stated that it is taking the necessary steps to resolve the issue with the tax authorities and ensure compliance. This development comes as part of ongoing efforts by tax authorities to ensure correct claims of ITC under the Goods and Services Tax regime.

LIC’s response emphasizes that it remains committed to maintaining transparency and adhering to regulatory requirements. The insurance giant’s market performance and operations are not expected to be affected by the demand, according to the company’s statement.

LIC Slapped with ₹39.39 Lakh Demand Notice for Short Payment of GST

The Life Insurance Corporation of India (LIC) has found itself in a tussle with tax authorities, as it received a demand notice amounting to approximately ₹39.39 lakh for the short payment of Goods and Services Tax (GST) for the fiscal year 2017-18.

According to a regulatory filing by LIC, the company has been issued a communication/demand order for interest and penalty from the Additional Commissioner, Central Goods & Service Tax, Gandhinagar, on January 3, 2024. The corporation wasted no time and promptly filed an appeal against the order, which demanded a GST payment of ₹19,64,584 for the aforementioned fiscal year, with applicable interest and an associated penalty of ₹19,74,584, before the Commissioner (Appeals), Ahmedabad on March 26, 2024.

This development underscores the ongoing complexities and challenges faced by major enterprises in navigating the intricacies of tax regulations. LIC’s proactive approach in appealing against the demand notice signals a firm resolve to contest the alleged shortfall in GST payment.

LIC’s stance in this matter will undoubtedly be closely monitored, bearing implications not just for the corporation but also for the broader business landscape. As the appeal unfolds, the outcome of this dispute will be of particular interest to stakeholders across the financial and regulatory realms.