LIC says it has got GST notice of Rs 37,000 for paying taxes at lower rate

Mumbai, Oct 11, 2023 

State-owned firm says taxes officer's action will not affect its finances

The Life Insurance Corporation of India (LIC) has received a Goods and Services Tax (GST) demand order accruing to nearly Rs 37,000 for paying taxes at 12 per cent instead of 18 per cent for some invoices during the assessment year 2019-2020.

The state taxes officer in Srinagar has charged the company with a GST of Rs 10,462, penalty amounting to Rs 20,000 and interest of Rs 6,382, aggregating to Rs 36844.

The state-owned insurer, in an exchange filing on Wednesday, said the action is not expected to affect its finances.

LIC had received Income Tax penalty notices of Rs 84 crore in October and Rs 290 crore in September.

LIC, in October, received Income Tax penalty for Rs 84 crore for multiple assessment years. For assessment year 2012-13, it was penalised Rs 12.61 crore and it was Rs 33.82 crore for 2018-19. For assessment year 2019-2020, the penalty amounted to Rs 37.58 crore.

In September, the company received another tax demand for more than Rs 166.75 crore. The interest charged was more than Rs 107.05 crore and the penalty cited above Rs 16.67 crore together amounting to Rs 2,90,49,22,609.

At 10.50 am, LIC’s share was trading 0.89 per cent up at Rs 641.15 on the National Stock Exchange.

[The Business Standard]