The Life Insurance Corporation of India (LIC), the country’s largest state-owned insurer, has received a Goods and Services Tax (GST) demand order of Rs. 57.28 crore from the Delhi tax authorities for the financial year 2020-21. The demand, issued by the Assistant Commissioner, Ward 206, Zone 11, Delhi, includes GST, interest, and penalties, citing excess Input Tax Credit (ITC) availed by the corporation during the said period.
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According to LIC’s regulatory filing, the demand order comprises Rs. 31.04 crore in GST, Rs. 23.13 crore in interest, and Rs. 3.10 crore in penalties. The corporation clarified that the order is appealable and stated that it is evaluating its legal options. LIC plans to challenge the demand before the Commissioner (Appeals), Delhi, and expressed confidence that the order will not have a significant impact on its financial health or operations.
In its official statement, LIC assured stakeholders that the demand would not materially affect its financials or operational activities. “The financial impact of the demand is limited to the GST, interest, and penalty amounts. There is no material impact on the financials, operations, or other activities of the Corporation,” LIC said. The insurer emphasized its commitment to complying with all regulatory requirements while safeguarding its interests through appropriate legal channels.
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The Life Insurance Corporation of India (LIC), established in 1956, is one of the largest and oldest state-owned insurance corporations in India. With a rich legacy spanning over six decades, LIC offers a wide range of life insurance products to cater to diverse needs, including term plans, endowment plans, pension plans, and unit-linked insurance plans (ULIPs). LIC is renowned for its extensive network of agents and branches across the country, ensuring accessibility to urban and rural customers alike. The corporation plays an important role in India’s financial sector, contributing significantly to the nation’s economy through its investments in various sectors and infrastructure projects.
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