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 underpayment of Goods and Services Tax (GST) over two financial years.
According to a regulatory filing by LIC, the company received a communication/demand order for interest and penalty from the Additional Commissioner of Central GST & Central Excise in Jamshedpur.
This demand notice is specifically related 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, pertains to the financial years 2018-19 and 2019-20.
In a separate filing, LIC disclosed that tax authorities have also issued a demand notice of around Rs 39.39 lakh for GST underpayment during the fiscal year 2017-18.
LIC has taken action by filing an appeal against the GST demand of Rs 19,64,584 for FY 2017-18, including the associated interest and a penalty of Rs 19,74,584, before the Commissioner (Appeals) in Ahmedabad on March 26, 2024.
Additionally, LIC reported filing an appeal before the Commissioner (Appeals) in Dehradun against an order demanding GST of Rs 3,89,25,914 for 2017-18, with applicable interest and a penalty of Rs 38,92,592.
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