LIC announced that it has received a communication/ demand order for collection of GST along with interest and penalty worth Rs 183 crore for Telangana
December 11, 2023
The state-owned life insurance company LIC of India, on Monday announced that it has received a communication/ demand order for collection of GST along with interest and penalty worth Rs 183 crore for Telangana.
“This is to inform that the Corporation has received communication/ demand order for collection of GST along with interest and penalty for Telangana state. The said order is appealable before Appellate Joint Commissioner (ST), Hyderabad Rural Division,” it said in a regulatory filing.
Per the demand order cum penalty notice for FY 2017-18, LIC is asked to pay a GST of Rs 81,18,43,219.98, along with a penalty of Rs 93,76,78,918.00 and the interest worth Rs 8,11,84,320.00.
It said that according to the notice, LIC has claimed Excess Input Tax Credit under Reverse Charge Mechanism and short payment under Reverse Charge Mechanism.
Earlier in November, LIC had posted a fall of nearly 11 per cent on-year in the total premium income to Rs 2.1 trillion in April-September. The overall premium income was dragged by a lower group business premium. It fell 30.9 per cent YoY to Rs 70,977 crore in the reporting period. Individual new business premium rose 2.7 per cent YoY to Rs 25,184 crore. Individual renewal premium rose 6.2 per cent YoY to Rs 1.1 trillion.
The company posted a net profit of Rs 17,469 crore in the first half of the current financial year, which included an amount of Rs.13,768 crore pertaining to the accretions on the available solvency margin, transferred from the non- participating fund to shareholders account. The life insurer had posted a bottom-line of Rs.16,635 crore in April-September, 2022, which includes an amount of Rs 4,542 crore pertaining to the accretions on the available solvency margin for the last quarter of 2021-22 (April-March) and this was transferred from non-participating fund to shareholders account on September 30.
[The Financial Express]
